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The Wall Street Journal November 08 2017l

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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WEDNESDAY, NOVEMBER 8, 2017 ~ VOL. CCLXX NO. 110
* * * * * *
DJIA 23557.23 À 8.81 0.04%
NASDAQ 6767.78 g 0.3%
STOXX 600 394.65 g 0.5%
10-YR. TREAS. À 3/32 , yield 2.309%
OIL $57.20 g $0.15
GOLD $1,273.70 g $5.70
Business & Finance
ckman lost his bid for
three seats on the ADP
board, a rebuke of the activist investor after an acrimonious proxy fight. A1
A
Waymo said it began
road testing a fleet of fully
driverless minivans in the
Phoenix area last month. B4
Twitter doubled the character limit on tweets to 280
in most countries. B4
Two men with links to Jho
Low tried to buy a controlling
stake in a bank in Mauritius, but were blocked. B12
The S&P 500 snapped a
five-session win streak.
The Dow edged up 8.81
points to 23557.23. B13
Japanese shares hit a
25-year high, driven in
part by foreign money. B13
CME plans to set limits
on how much prices of its
proposed bitcoin futures can
fluctuate within a day. B13
Trump took direct aim
at North Korea’s leader in
a speech before lawmakers
in Seoul that both extended
a hand to Kim and issued a
dire warning should he ignore the invitation. A1
The president was set to
arrive in China Wednesday
for talks with Xi that will focus on trade and investment,
as well as North Korea. A8
Chinese banks risk steep
penalties for aiding North
Korea under a bill cleared by
the Senate banking panel. A8
Democrat Northam won
the Virginia governorship in
the first major test of the
Trump presidency’s effect
on swing-state politics. New
Jersey’s gubernatorial race
went to Democrat Murphy. A1
Maine residents voted to
expand access to Medicaid
under the ACA, in a key test of
the health law’s popularity. A4
The national database designed to vet gun buyers
came under criticism, a day
after the Air Force admitted it
failed to submit the records of
the Texas church shooter. A3
The assailant escaped from
a New Mexico mental-health
facility in June 2012, according to a police report. A3
Saudi Arabia is aiming to
confiscate up to $800 billion
of assets in its crackdown on
alleged corruption among
the kingdom’s elite. A7
The Republican $1.4 trillion tax cut proposal making
its way through Congress hits
U.S. households unevenly. A6
GOP senators aim to preserve a popular deduction for
household medical expenses in
their version of a tax plan. A6
Opinion.............. A15-17
Property Report... B6
Sports....................... A14
Technology............... B4
U.S. News......... A2-4,6
Weather................... A14
World News....... A7-8
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
President Donald Trump addressed the National Assembly in Seoul on Wednesday, before traveling to Beijing. Mr. Trump called on North
Korean leader Kim Jong-un to abandon his country’s nuclear weapons program and issued a dire warning if Pyongyang didn’t change its ways.
Trump Presses North Korea
BY MICHAEL C. BENDER
SEOUL—President Donald
Trump took direct aim at Kim
Jong Un in a speech that both
extended a hand to the North
Korean leader and issued a
dire warning should he ignore
the invitation.
“This is a very different administration than the United
States has had in the past,”
Mr. Trump said in an address
to South Korean lawmakers
Wednesday. “Do not underestimate us, and do not try us.”
The president called on Mr.
Kim to abandon his country’s
peninsula divided.
“North Korea is not the paradise your grandfather envisioned—it is a hell that no person deserves,” Mr. Trump said,
referring to North Korea’s
founding leader, Kim Il Sung.
“We will offer a path to a
much better future,” he continued. “It begins with an end
to the aggression of your regime, a stop to the development of ballistic missiles and
complete, verifiable and total
denuclearization.”
The 35-minute address to the
South Korean National Assembly was the last major event of
Asia Trip Continues
Xi hosts from position of
strength ............................. A8
Sanctions bill aims at
Chinese banks.................. A8
Andrew Browne: Allies wary
of Trump in China ............. A8
nuclear-weapons program as
he contrasted the successful
capitalist economy of South
Korea with that of the North,
whose economy is many times
smaller. Both countries’ output
was similar in 1953, when the
end of the Korean War left the
Snap disappointed Wall Street again, posting a wider loss and
missing forecasts for revenue. User growth was also well below
expectations. Shares plunged 16% in after-hours trading. B1
Quarterly change in
daily active users
Daily share price
25%
$30 a share
20
25
15
20
Third
quarter
s2.9%
10
5
Private investigators invest millions of dollars to collect judgments
BY MARGOT PATRICK
Dan Hall, a high-powered international
debt-collector, was working late in the London offices of Burford Capital Ltd. when a
colleague pointed to her computer screen
and yelled, “Guys, I think they’re in Claridge’s right now!”
The screen showed an Instagram tableau
from the luxury hotel: a fish reposed on
Claridge’s green-striped china. Another
photo showed three men having drinks, including Harry Sargeant III, toting a cigar.
For months, Mr. Hall had sought Mr.
Sargeant, a 59-year-old American oilman
who owed a Burford client $28.8 million
from a 2011 court judgment.
“Holy sh—,” Mr. Hall said, and the chase
was on. The fish photo had been posted an
hour earlier; the hotel was 3 miles away. Mr.
Tuesday close
$15.12
15
10
0
After hours
$12.65 t16%
5
2014 ’15
’16
’17
Sources: the company (users); FactSet (shares)
Activist
Ackman
Gets Rebuke
In ADP Vote
BY DAVID BENOIT
ROSELAND, N.J.—William
Ackman lost his bid for three
seats on the board of Automatic Data Processing Inc., a
resounding rebuke of the
struggling activist investor as
shareholders sided with management at the human-resources software company.
ADP investors on Tuesday
re-elected the entire 10-person
board at its annual meeting,
capping a battle between management and Mr. Ackman that
was particularly acrimonious
and colorful—even by typical
proxy-fight standards.
Mr. Ackman, who according
to ADP won less than 25% of
the shares that were voted,
said he got “a very significant
amount of shareholder support.” But ADP Chief Executive
Please see ADP page A6
Mr. Trump’s roughly 24 hours
in the country. The president
departed shortly afterward for
China, the third of five countries he plans to visit on his 10day swing through Asia.
Mr. Trump put Beijing on
notice ahead of his highstakes talks with Chinese
President Xi Jinping, twice
naming China as a country
that can do more to pressure
Pyongyang to change course.
China is by far North Korea’s
top trading partner, but is
also the U.S.’s largest.
China has said it is implePlease see KOREA page A8
M A M J
FAIRFAX,
Va.—Democrat
Ralph Northam captured the
Virginia governorship on Tuesday, beating Republican Ed Gillespie in the first major test of
how the Donald Trump presidency has affected swing-state
politics.
Mr. Northam, a physician
who is Virginia’s lieutenant governor, won the race to succeed
Democratic Gov. Terry McAuliffe, giving their party another
four years in the governor’s
mansion.
“Virginia, we have witnessed
yet another Democratic sweep
today,” Mr. Northam said at his
victory rally, adding that the
eyes of the nation were on the
state. “Virginia has told us to
end the divisiveness, that we
will not condone hatred and
bigotry.”
With 99% of the precincts
counted, Mr. Northam had
53.9% of the vote, compared
with 45% for Mr. Gillespie.
The decisive win in Virginia,
where the governorship has
seesawed between the parties in
recent years, gave Democrats a
double-barreled victory Tuesday
night: In New Jersey, voters
elected Democrat Phil Murphy
governor over Republican Kim
Guadagno, ending two terms of
GOP control by Gov. Chris Christie.
The mood was upbeat at Mr.
Murphy’s Election Night party
at the Asbury Park Convention
Hall on the New Jersey shore,
where supporters celebrated the
end of Mr. Christie’s tenure and
the state’s return to Democratic
Please see VOTE page A4
Jet-Set Debt Collectors Hunt
Elusive Targets: the Superrich
Oh, Snap. Shares Dive After Loss
World-Wide
CONTENTS
Banking & Finance B12
Business News.. B3,5
Crossword.............. A14
Heard on Street.. B14
Life & Arts....... A11-13
Markets............. B13-14
ANDREW HARNIK/ASSOCIATED PRESS
Bridgewater paid a settlement to a woman who
was pushed out after engaging in a consensual relationship with a top executive. B1
Toyota raised its profit
forecasts, but the auto maker
said the U.S. market continues to weigh on earnings. B3
YEN 114.01
BY JANET HOOK
AND JOSHUA JAMERSON
Snap’s shares fell 16% in
after-hours trading after the
Snapchat parent said its loss
more than tripled and revenue fell short of forecasts. B1
State Street’s CEO and
president plan to retire. ExFidelity executive O’Hanley
will become CEO in 2018. B12
EURO $1.1587
Democrats
Win Big
Races in
Virginia,
New Jersey
What’s
News
Outcome Health investors sued the startup and its
two founders, claiming fraud
and breach of contract. B1
HHHH $4.00
WSJ.com
J
A
S O N
THE WALL STREET JOURNAL.
These People Love Horror Movies,
They Just Never Watch Them
i
i
i
Fans who don’t care to see the splatter
go online to read anodyne summaries
BY ERICH SCHWARTZEL
“I thought I was the only one
who did this,” she said.
Like a babysitter on Elm
Miriam Traore heard about
the movie “It” and thought the Street, she is not alone.
Scaredy cats across the counkiller-clown adaptation looked
interesting. So Ms. Traore, a 33- try have found refuge—and a
perverse
pleayear-old project
sure—in reading
manager
and
the plots to horror
Jazzercise instrucmovies on Wikipetor in San Frandia, where users
cisco, did what
who have actually
she always does
when a horror
stomached
the
flick intrigues her:
fright fests relay all
She skipped the
the grisly details in
theater and went
totally bloodless
on Wikipedia.
prose. The internet
Freddy Krueger
“I want to
has become a
know what the
minefield of spoilstory is. I don’t want the story ers for movies and television
told to me necessarily,” said Ms. shows, but sites like Wikipedia,
Traore, who hasn’t seen a hor- Internet Movie Database (IMDb)
ror movie in ages but recently and TheMovieSpoiler.com have
read the plots to “Amityville given rise to an unlikely hobby
Horror,” “The Boy,” “Halloween for the morbidly curious but
Please see SCARY page A10
3,” “Split” and “mother!”
Hall bolted outside and hailed a cab. En
route, he called lawyers to meet him at the
hotel with a freshly signed court order to
put a freeze on Mr. Sargeant’s U.K. assets.
Mr. Hall, 37 years old, had spent close to
$10 million of his firm’s money on surveillance and legal work to try to collect the
eight-figure judgment from Mr. Sargeant. Finally, it seemed, Mr. Hall had his man.
Many people win multimillion-dollar judgments in court. Collecting on them is another matter. Burford, Mr. Hall’s employer, is
part of a new generation of firms that chase
assets of the superrich who are tardy on
payments from judgments, arbitration
awards and other financial obligations. In
one measure of the potential market, The
Global Arbitration Review, an industry journal, estimates there are about $2 trillion in
Please see DEBT page A10
CIRQUE DU SOLEIL
IS LIVE.
SAP HANA helps Cirque du Soleil
turn mobile devices into a live
part of every performance of
TORUK—The First Flight. While
backstage, SAP solutions
manage finance, HR, travel
and procurement.
sap.com/cirquelive
®
®
®
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A2 | Wednesday, November 8, 2017
U.S. NEWS
New York Fed Begins Search for New Chief
Help Wanted: A senior executive with a keen knowledge of
markets and economics, but
who isn’t too close to Wall
Street because he or she will be
responsible for regulating some
of the world’s biggest banks.
This is the balancing act facing a newly formed search
committee for the next president of the Federal Reserve
Bank of New York following the
announcement Monday that the
current leader, William Dudley,
will step down in mid-2018,
several months before his term
expires in January 2019.
The New York Fed president
is a voting member of the Federal Reserve committee that
sets interest rates and other
monetary policies aimed at
keeping the economy on track.
The chief also runs the Fed
bank that works with the markets to implement these policies and that supervises some
of the nation’s biggest financial institutions.
The new president would
take over an institution more
intensely scrutinized since the
financial crisis, and criticized
by some lawmakers and others
Yellen Calls Ethics
Key to Public Trust
Federal Reserve Chairwoman Janet Yellen said that
ethical behavior from the Fed
allows the public to trust it is
acting on its behalf.
“The Federal Reserve’s very
effectiveness in setting monetary policy depends on the public’s assured confidence that we
act only in its interest,” she
said Tuesday.
“We must act ethically, and
we must demonstrate our ethi-
cal standards in ways that
leave little room for doubt.”
Ms. Yellen spoke at a ceremony honoring her and her predecessor at the central bank,
Ben Bernanke. She didn’t discuss the economy or monetary
policy in her remarks.
The award from the Institute of Government and Public
Affairs at the University of Illinois honors ethics in government and is named after the
late Sen. Paul Douglas of Illinois, who devoted his political
career to rooting out government corruption. He was also
an economist who taught at
the University of Chicago and
Amherst College in the 1920s
and 1930s. His biggest contribution was perhaps a formula
developed with Amherst College mathematician Charles
Cobb identifying how labor and
capital combine to produce economic output. Mr. Douglas died
in 1976.
“But, of course, Paul Douglas was much more than an
economist,” Ms. Yellen said.
“One of Paul Douglas’s most
important achievements in public life was to promote ethics in
government.”
—David Harrison
as a lax supervisor before the
turmoil and too slow to get
tough afterward.
The search for Mr. Dudley’s
successor adds to an extraordinary degree of churn in the
central bank’s top ranks. President Donald Trump last week
nominated Fed governor Jerome Powell to succeed Fed
Chairwoman Janet Yellen when
her term expires in February.
Last month, Fed Vice Chairman
Stanley Fischer stepped down
from his post. Mr. Trump has
three open seats to fill on the
board and could have a fourth if
Ms. Yellen decides to leave after
her term as chairwoman ends.
Already, the Senate has
confirmed Mr. Trump’s first
board nominee, Randal Quarles, to the position of vice
chair of bank supervision. If
Ms. Yellen departs, every governor except for Lael Brainard
would be in their current job
courtesy of Mr. Trump.
There is no example in modern Fed history of a new chair,
vice chair and New York Fed
president taking office within
just a few months, said Peter
Conti-Brown, a historian at the
University of Pennsylvania.
“We’re embarking on an unprecedented change of the
guard within the Federal Reserve System,” he said.
The closest example, he said,
comes from the early 1950s,
when William McChesney Martin Jr. launched a campaign to
consolidate leadership in Washington, filling a vacant vice
Puerto Rico Utility’s
Leader Skips Hearing
BY ANDREW SCURRIA
The head of Puerto Rico’s
public power monopoly canceled his plans to appear at a
hearing Tuesday where federal officials sought approval
from Congress to take over
the utility.
Ricardo Ramos, executive director of the power company
known as Prepa, was to testify
on the U.S. territory’s efforts to
rebuild after Hurricane Maria.
But on Monday, the House Committee on Natural Resources
was informed that its star witness wouldn’t be attending because he was needed to manage
ongoing recovery efforts.
His absence was a surprise
to committee members and to
Prepa legal advisers, who had
been preparing him to testify
for days, according to a person
familiar with the matter.
Prepa’s response to Hurricane Maria’s devastation came
under bipartisan criticism in
Congress after the utility
awarded a $300 million contract to a small Montana-based
startup, Whitefish Energy
Holdings LLC, to repair downed
power lines. The contract,
which wasn’t competitively bid,
is being reviewed by congressional panels, the Department
of Homeland Security and the
Federal Bureau of Investigation.
Mr. Ramos was expected to answer questions on the matter.
chair position and driving out
New York Fed President Allan
Sproul, but even that process
took four years to complete.
Because Mr. Powell, if confirmed by the Senate, would
be the first Fed chairman in
30 years without a Ph.D. in
economics, the New York Fed
search committee could put a
premium on a candidate with
expertise in monetary policy.
The search team might also
focus on candidates with management experience, since the
New York Fed president manages an institution of more
than 3,100 employees, and
with experience dealing with
international markets and foreign central banks.
Candidates that might fit at
least some of these criteria
would include Simon Potter,
head of the New York Fed’s
markets group; his deputy, Lorie Logan; and Brian Sack, an
economist at hedge fund D.E.
Shaw Group who held the job
before Mr. Potter.
Mr. Trump won’t have a
hand in selecting Mr. Dudley’s
successor. While the seven Fed
board members are nominated
by the president and confirmed by the Senate, the 12
regional bank presidents are
selected by the nonbank directors of each reserve bank, subject to approval by the Fed’s
Washington-based governors.
The New York Fed said it
had formed a four-person committee of business and civic
leaders to run the nationwide
search. The co-chairs are Sara
Horowitz, a union organizer
who founded the Freelancers
Union, a nonprofit that provides health care and other
benefits to independent workers, and private-equity investor
Glenn Hutchins, who was an
adviser to Bill Clinton’s 1992
presidential transition team.
The committee also includes
David Cote, chairman of Honeywell who served as the
firm’s chief executive until
March, and Denise Scott, a top
executive at the Local Initiatives Support Corp., a nonprofit that specializes in community development. Two
other board members will join
those four directors in voting
on the committee’s recommendations. One of those seats is
vacant. The second is Charles
Phillips, chief executive officer
of Infor Inc., who was named
as a director on Friday.
Plane Crash Kills Roy Halladay, Who Pitched a Perfect Game
“We had a witness who
bailed on us last-minute,” said
Rep. Rob Bishop (R-Utah), the
committee chairman, adding
the panel had received thousands of pages of documents
from Prepa that raised additional questions about the deal.
Rep. Jenniffer GonzálezColón, Puerto Rico’s nonvoting
member of Congress, said she
was disappointed that Mr. Ramos didn’t attend. “This committee and the rest of the people in Congress need to know
what happened,” she said.
Natalie Jaresko, executive
director of the federal oversight board supervising Puerto
Rico’s finances, testified that
Congress should ratify her authority to wrest control of the
Puerto Rico Electric Power Authority from local officials.
Congress is debating the oversight board’s role in Puerto
Rico’s recovery from Hurricane Maria while the majority
of the 3.4 million residents
there still lack electricity.
A Whitefish spokesman defended its work on the ground
and said it had mobilized 446
workers to Puerto Rico when
other potential contractors
were unwilling to risk doing
business with Prepa. Whitefish
has been paid $10.8 million
under its contract to date, the
spokesman said. Gov. Ricardo
Rosselló ordered the contract
canceled last month.
WTVT/ASSOCIATED PRESS
BY NICK TIMIRAOS
Roy Halladay, a two-time Cy
Young Award winner who
pitched a perfect game and a
playoff no-hitter for the Philadelphia Phillies, died Tuesday when
his private plane crashed into
the Gulf of Mexico. He was 40
years old.
Pasco County Sheriff Chris
Nocco said Mr. Halladay’s ICON
A5, at left, went down around
noon off Holiday, Fla., north of
Tampa. The sheriff’s office marine unit responded and discovered his body in shallow water
near some mangroves. No survivors were found.
Police said they couldn’t confirm if there were additional passengers on the plane or say
where it was headed. The National Transportation Safety
Board is investigating.
Mr. Halladay, who retired after the 2013 season, was an amateur pilot who often posted on
social media about small planes.
“I have dreamed about owning a A5 since I retired! Real life
is better then my dreams!!” he
tweeted on Oct. 13.
He is survived by his wife,
Brandy, and two sons, Ryan and
Braden.
Mr. Halladay spent 12 seasons with the Toronto Blue Jays
followed by four with the Phillies. He ended his career with a
203-105 record, a 3.38 ERA, and
was an eight-time All-Star.
“Such a sad day,” former Phillies first baseman Ryan Howard
tweeted. “We lost a great ball
player but an even better human
being.”
—Associated Press
U.S. WATCH
VETERANS AFFAIRS
Mix-Up Preceded
Death in Hospital
A man who had bypass surgery died at a VA hospital in
Michigan last year after a nurse
mistakenly believed he didn’t
want to be resuscitated in an
emergency, investigators said
Tuesday.
As a result, the nurse no longer provides direct care, investigators said, noting that it was
the third time in four years that
he was “involved in significant
monitoring deficiencies in highrisk patients.”
No names were released in
the report by the inspector general at the Department of Veterans Affairs.
The man was admitted to
the VA hospital in Ann Arbor in
2016 for surgery to relieve leg
pain from a blocked artery. He
had other health problems, including cancer, diabetes and a
family history of coronary disease, the report said. The nurse
told investigators that he was
watching two other patients
that day and became confused
about resuscitation orders.
VA spokesman Curt Cashour
said employees could face sanctions. VA Secretary David
Shulkin “has made clear that VA
will hold employees accountable
when they fail to live up to the
high standards taxpayers expect
from us. And that’s exactly what
we’re doing in this case,” Mr.
Cashour said.
—Associated Press
CORRECTIONS AMPLIFICATIONS
Brooke Ward was Joann
Ward’s daughter. In some editions Tuesday, a U.S. News article and a photo caption about
the victims of Sunday’s Texas
church shooting incorrectly
said Brooke was Mrs. Ward’s
stepdaughter.
Diane Greene, chief executive of Alphabet Inc.’s Google
Cloud, said a new partnership
meant the company had a
“chance” to bring its productivity apps to Salesforce.com
Inc.’s customers with little friction. A Technology article on
Tuesday about the partnership
incorrectly quoted Ms. Greene
as saying it was a “change” for
Google.
Broadcom Ltd. was formed
when Avago Technologies Ltd.
bought Broadcom Corp. in 2015
for $37 billion and kept the
name. A Page One article Tuesday about Broadcom Ltd.’s unsolicited bid for Qualcomm
Inc. incorrectly said $39 billion.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
BALTIMORE
Van Driver Not Guilty
In Freddie Gray Case
A disciplinary panel unanimously found a Baltimore police
van driver not guilty Tuesday of
all administrative charges related
to his role in transporting Freddie Gray, the black man whose
fatal injury during the ride
sparked riots in the city.
The three-member board
found that Officer Caesar Goodson, also a black man, didn’t violate any department policies
outlined in 21 charges against
him the day Mr. Gray was fatally
injured in police custody. Mr.
Goodson smiled and appeared
relieved after the verdicts were
read.
Mr. Goodson has remained
employed with the department
and will keep his job.
Department lawyer Neil Duke
had argued that Mr. Goodson
should have been fired for failing
to follow policy by not buckling
Mr. Gray into a seat belt, failing
to get him medical attention and
lying about the chain of events
following Mr. Gray’s arrest in
April 2015.
Mr. Gray died a week later of
a spinal cord injury he suffered
during the van ride, prompting
civil unrest among people expressing outrage at the treatment of African-Americans by
police in Baltimore’s inner city.
None of the six officers charged
criminally for their roles in Mr.
Gray’s arrest were convicted.
—Associated Press
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | A3
* * * *
NICK WAGNER/AUSTIN AMERICAN-STATESMAN/REUTERS
©T&CO. 2017
U.S. NEWS
Law-enforcement officials at the First Baptist Church in Sutherland Springs, Texas, where a gunman killed 26 people on Sunday.
Gun Record Lapses in Focus
Database to vet buyers
is under scrutiny amid
claims military often
fails to send updates
BY KRISTINA PETERSON
AND JACOB GERSHMAN
The national database designed to vet gun buyers came
under criticism from Congress
and others on Tuesday, some of
whom claimed the U.S. military
routinely neglects to populate it
with court-martial records, as
required by federal law.
The outcry came a day after
the Air Force admitted that it
had failed to submit the records of Devin Patrick Kelley,
who killed 26 people in a
Texas church on Sunday, to the
Federal Bureau of Investigation after a 2012 court-martial
conviction on two counts of
domestic assault. The lapse
seems to explain why Kelley
passed background checks and
was allowed to buy guns in recent years.
The Senate’s No. 2 Republican, Sen. John Cornyn of
Texas, said Tuesday he is working on legislation to get federal
agencies, including the military, to upload criminal-conviction records into the FBI’s database, the National Instant
Criminal Background Check
System, known as NICS. Those
records are already required,
but can slip through the cracks
for a variety of reasons.
“According to the Department of Justice, the number of
these records that are actually
uploaded is staggeringly low,”
Mr. Cornyn said on the Senate
floor Tuesday. “That is unacceptable and it must change.”
The Justice Department
didn’t respond to requests for
comment.
Others familiar with NICS
said the large gaps in information sharing between the military and the Justice Depart-
Shooter Had Fled
Mental Hospital
Gunman Devin Patrick Kelley escaped from a New Mexico mental health facility five
years before he killed 26 people
at a Baptist church in Sutherland Springs, Texas, according
to a law-enforcement official.
Kelley, then in the Air Force,
escaped from Peak Behavioral
Health Services, a mental hospital in Santa Teresa, N.M., in June
2012, a police report indicated.
Five days before his escape,
an Air Force commander had
ordered Kelley to pretrial confinement on charges he had
assaulted his wife and young
stepson, a Pentagon official
said. It is unclear how he ended
up at the mental hospital during that confinement period.
A witness told police that
Kelley, 21 years old at the time,
“suffered from mental disorders” and had plans to take a
bus out of state. The witness
said Kelley was a danger to
ment has led to a blind spot in
background checks of veterans, allowing those barred
from possessing weapons to
get cleared. They say the failure with Kelley’s record more
likely reflects a systemic flaw
rather than a one-time miss.
“This comes as no surprise
to any of us familiar with the
way NICS works,” said Robert
Belair, a Washington privacy
lawyer and expert on the FBI’s
background-screening system.
Mr. Belair said the Air Force
and other branches of the military seldom submit court-martial records to the FBI’s
screening database when the
offense doesn’t lead to a dishonorable discharge. “It’s just
never been a priority for the
military,” Mr. Belair said regarding the information shar-
system containing millions of
criminal history records and
protection orders. The system is
supposed to flag whether a potential gun buyer falls in various
categories prohibiting a sale.
The checks, which typically
take a few minutes at a gun
store, ensure the purchaser
doesn’t fit into one of several
prohibited categories, such as
fugitives, convicted felons or
those with dishonorable discharges from the military.
At least two firearm purchases made by Kelley in San
Antonio this year and last
didn’t raise any red flags.
Three weapons were recovered
after the shooting, according
to the Bureau of Alcohol, Tobacco, Firearms and Explosives. One was a Ruger 556 rifle recovered at the scene of
the church. Two handguns
were found in his vehicle—a
Glock 9mm and a Ruger 22.
On Tuesday, Republican Senators called for change. Susan
Collins of Maine and Pat
Toomey of Pennsylvania wrote
to Defense Secretary Jim Mattis
and the acting head of the
Homeland Security Department, urging them to review
procedures for reporting criminal records to the national
background-check system.
Sens. Jeff Flake (R., Ariz.)
and Martin Heinrich (D., N.M.)
also introduced legislation
that would require the military
to report domestic-violence
misdemeanors to the national
background-check system if
they would be recognized as
domestic-assault convictions
in the state court system. The
lawmakers said the current
military code only has a broad
category of assault, so domestic-violence convictions have
gone unreported.
In 1996, Congress expanded
gun restrictions, barring those
who have been convicted of a
misdemeanor crime of domestic violence, not just felony offenses.
himself and others.
Kelley had been caught
sneaking firearms onto Holloman Air Force Base near Alamogordo, N.M., where he was
stationed, and was “attempting
to carry out death threats”
that he had made on his military chain of command, the
witness said.
Local military installations
that don’t have the resources
to provide inpatient mental
health care often use private
mental-heath facilities off base,
Air Force officials said. Peak
Behavioral, which didn’t respond to requests for comment, is nearly 100 miles from
Holloman Air Force Base.
After escaping, Kelley fled
about 12 miles across the state
line to El Paso, Texas, where
he was picked up by police, according to an El Paso Police
Department incident report.
Also Tuesday, investigators
said they have Kelley’s cellphone but have been unable to
get into the device to see information that could be crucial
to the probe.
ing between the U.S. armed
forces and the FBI database.
The military sentenced Kelley to one year in a military jail,
a demotion to the rank of airman and a bad-conduct discharge.
An Air Force spokeswoman
said Monday the organization
would conduct a review to
“ensure records in other cases
have been reported correctly.”
The Defense Department is expected to announce a review
across the services on how the
U.S. military reports such
cases into the backgroundcheck system.
A spokesman for the FBI declined to comment.
Federally licensed firearm
dealers are required to check
the credentials of every potential buyer against the NICS
‘All I Heard Was Bullets Flying’
SUTHERLAND SPRINGS,
Texas—The little congregation
at First Baptist Church had
just finished singing at the
start of Sunday services when
bullets flew into the sanctuary.
Farida Brown was sitting in
the last row of pews, near the
door, where a gunman dressed
in black entered firing a semiautomatic rifle.
A Sunday school teacher for
the church sitting on Ms.
Brown’s right yelled for everyone to drop to the ground.
“We heard the bang-bang, and
he said, ‘Get down, everybody!’ and so I got down,” said
Ms. Brown, 73 years old.
By the time Devin Patrick
Kelley stopped shooting, most
of the congregation would be
dead or wounded. He killed 26
people and injured 20 more.
Ten of the wounded were in
critical condition Tuesday
night; the few survivors who
have been able to speak describe a bloody and terrifying
scene as Kelley shot those trying to make a run for it.
Investigators described a
massive crime scene inside the
little church, pored over by
more than 100 law-enforcement officials. Accounts of
what happened inside the
church are rare.
DAVID BROWN
BY ERIN AILWORTH
AND TAWNELL D. HOBBS
Farida Brown and her son David, at a wedding a few years ago.
As soon as the shooting
started, according to Ms.
Brown, she and a friend next
to her dropped to the ground.
“All I heard was bullets flying everywhere,” she said.
Later, she would hear an account of a woman begging
Kelley not to shoot her children, but Ms. Brown said all
she remembers is the nonstop
sound of bullets.
Ms. Brown considered making a break for a back door, or
to the church’s cafeteria or
nursery, but saw the gunman
shooting anyone who ran.
Instead, she stayed low and
crawled two pews up. She
could see the gunman’s boots
as he walked along the walls
of the church, and then began
pacing up and down the aisles
among the pews, shooting
congregants in the head. “He
went to double-check and
shoot,” she said.
Rosanne Solis, another
church member, was also trying to hide under a pew as
Kelley walked around shooting
people. She was shot in the
shoulder despite trying to hide
and keep quiet, said her niece,
Margaret Vidal.
“He went in there and he
made sure everybody was
shot. He even went up the
stairs, and he was shooting
from the balcony,” she said
her aunt told her.
Kelley neared where Ms.
Brown was lying on the floor.
She held the hand of a young
girl lying next to her and told
her, “We going to heaven, just
start praying.” Bullets rained
around them.
“I put my head down on the
concrete and folded my
hands,” she recalled. “I was
ready. I said, ‘God, take me to
heaven.’ I lived.”
Ms. Brown was shot in her
legs. On Tuesday, she sat in a
hospital bed in nearby Floresville surrounded by family and
flowers from well-wishers.
“When I do fall asleep, I’m
in the church getting shot up,”
said Ms. Brown, who has been
sleeping in spurts, cuddling
occasionally with a large white
teddy bear left by a friend
that she has nicknamed St.
Nick.
On Tuesday, her injured
legs were swaddled in bandages and covered by a white
blanket. One bullet lodged under her right kneecap, her son
David said, while a bullet fragment hit above her left knee.
Shrapnel from a ricochet
struck her left hip and several
inches below.
She doesn’t recall being
shot, but the minutes she lay
on the ground waiting to die
are clear. “I was the last one
to kill,” she said. “And then
God sent my protection.”
—Jim Oberman
and Alejandro Lazo
contributed to this article.
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A4 | Wednesday, November 8, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Maine Votes to Expand Medicaid
Informant
Provides
Insight on
Benghazi
BY MICHELLE HACKMAN
AND JENNIFER LEVITZ
BY DEL QUENTIN WILBER
Maine residents voted decisively to expand access to
Medicaid under the Affordable Care Act on Tuesday, a
key test of the ACA’s popularity after a failed push to repeal it by Republicans in
Washington.
Support for the ballot
measure was leading 59%-41%
with 66% of precincts reporting, and the Associated Press
declared it had been approved. This makes Maine the
32nd state to embrace the expansion, a central pillar of
the 2010 health-care law, and
the first time a state has
done so through a popular
referendum.
The outcome could hint at
the salience of health-care issues in the 2018 midterm
elections.
Supporters of the measure
cheered its passage, which
will extend Medicaid health
benefits to all low-income
adults in the state. Medicaid
in Maine and other nonexpansion states in many cases
doesn’t cover working-age
ROBERT F. BUKATY/ASSOCIATED PRESS
State becomes first
to widen program,
a pillar of health law,
through a referendum
Disabled veteran Donald Simoneau of Fayette, Maine, who is in favor of expanding Medicaid.
residents without children.
State
Sen.
Thomas
Saviello, a Republican who
voted multiple times in favor
of expanding Medicaid, said
state residents recognized
the program’s benefits.
“They recognize what it
takes to move this state forward, and in order to do that,
you need to have a healthy
population,” he said. “We are
a poor state and it makes a
huge difference in rural areas
to have this expansion.”
Maine’s Republican governor, Paul LePage, has vetoed
five attempts by the state’s
Legislature to expand the
program and led opposition
to the ballot initiative, arguing that it would deplete
state coffers, since the state
would have to provide about
10% of the money for the expansion.
“I see this as a very large
monetary concern,” said state
Rep. Susan Austin, a Republican who said she wasn’t surprised to see the expansion
pass. “It looks like a very
challenging thing to me.”
The showdown unfolded
just as Republicans nationally
are looking for ways to reverse the Medicaid expansion, which extended coverage to 14 million Americans
who were previously uninsured.
Seema Verma, who heads
the federal Centers for Medicare and Medicaid Services,
announced Tuesday she intends to approve state requests to impose work requirements on some Medicaid
beneficiaries, which health
analysts say would shrink the
program’s rolls.
The Medicaid expansion
has grown in popularity, polling shows, since Republicans
in Washington have made repeated runs at repealing the
program as part of their
larger effort to roll back the
ACA. Some Republican governors and lawmakers opposed
paring it back, and one of its
strongest GOP defenders was
Maine’s Sen. Susan Collins.
The measure’s success
could create a model for
other politically divided
states to follow. Advocates of
expanding Medicaid in Utah
filed a petition in October to
place the issue on the 2018
ballot and activists in Idaho
are looking to do the same.
The ballot question will extend Medicaid to adults under
age 65 with incomes at or below 138% of the poverty level,
which in 2017 means $16,643
for a single person or $22,412
for a family of two.
—Peter Loftus
contributed to this article.
WASHINGTON
WIRE
CENTRAL BANK
Fed Supervision Chief
Urges Rules Review
GOVERNMENT SPENDING
Study Estimates War
Costs at $5.6 Trillion
U.S. wars in Afghanistan, Iraq,
Syria and Pakistan have cost the
nation’s taxpayers $5.6 trillion
since they began in 2001, according to a new study.
That figure is more than three
times that of the Pentagon’s own
estimates. The Defense Department estimated earlier this year
that the total cost of the conflicts
since the 2001 attacks has
amounted to about $1.5 trillion.
The new study, by the Watson
Institute of International and Public Affairs at Brown University,
aims to reflect costs the Pentagon
doesn’t include in its own calculations since war costs aren’t borne
by the Defense Department alone.
As such, said the study’s author,
Neta Crawford, the analysis isn’t
an apples-to-apples comparison.
“War costs are more than
what we spend in any one year
on what’s called the pointy end of
the spear,” she said in an interview. “There are all these other
costs behind the spear, and there
are consequences of using it, that
we need to include.”
For example, the study’s estimates include recurring costs such
as long-term medical care for veterans and war costs incurred by
the State Department. Costs also
reflect related spending by the
Department of Homeland Security,
the Department of Veterans Affairs and other agencies.
Sen. Jack Reed (D., R.I.) said
studies such as the Brown report
are critical because they show
what the true costs of war are, as
Congress debates budgets, tax
cuts and wartime policies.
—Gordon Lubold
AARON P. BERNSTEIN/REUTERS
The witness testified
he agonized over
whether to help the
U.S. investigation.
Above, supporters of Virginia’s Democratic gubernatorial candidate Ralph Northam, below, celebrated Tuesday night.
VOTE
Continued from Page One
control. “Tonight we declare the
days of division are over,” Mr.
Murphy said. “We will move
forward together.”
It was an abrupt change in
fortune for Democrats who have
been frustrated this year in
House special elections in Republican districts such as a seat
in the Atlanta suburbs.
Democratic Party officials are
hoping the twin victories are a
harbinger of success in the 2018
midterm elections. The party’s
activists showed they can help
even a low-key campaigner like
Mr. Northam, who was second
choice for many progressives
who supported his primary rival, former Rep. Tom Perriello.
Mr. Northam’s supporters
saw the Democratic sweep—
which could also bring significant gains for Democrats in the
GOP controlled state House of
Delegates—as a repudiation of
Mr. Trump.
After calling Mr. Northam to
concede defeat, Mr. Gillespie described his opponent as a “good
man” in a speech to supporters
in Richmond. “I wish him nothing but the best,” said Mr. Gillespie, who made no mention of
the GOP president.
Mr. Trump, in a Twitter message after Mr. Gillespie’s loss,
kept his distance from the Republican candidate.
“Ed Gillespie worked hard
but did not embrace me or what
I stand for,” he said. “Don’t forget, Republicans won 4 out of 4
House seats, and with the economy doing record numbers, we
will continue to win, even bigger than before.”
Mr. McAuliffe, speaking at
Mr. Northam’s victory rally, said
the results would have national
political implications and embolden anti-Trump forces.
“Tonight is a wake up call in
this country,” he said. “No longer will we stand back. We will
stand up.”
AARON P. BERNSTEIN/REUTERS; EDUARDO MUNOZ ALVAREZ/GETTY IMAGES (BOTTOM)
The Federal Reserve’s new
chief of bank oversight said Tuesday that all of the agency’s Wall
Street rules should get a fresh
look and that annual bank stress
tests are “on the front burner.”
Fed Vice Chairman for Supervision Randal Quarles, in his first
public remarks since taking office
less than a month ago, said he is
looking for transparency and simplicity in the Fed’s oversight of the
banking industry.
He also said he believes changing the tone the Fed takes with
bankers will be a key part of his
impact after taking over from regulators appointed by the administration of former President Barack
Obama, a Democrat.
“Particularly in the early stages
and perhaps throughout my entire
term, engaging on changing the
tenor of supervision will probably
actually be the biggest part of
what it is that I do,” he said, adding that he has “perceived quite
an openness in the deep state at
the Fed to taking a fresh look.”
Mr. Quarles said he is encouraging the central bank to take “a
fresh look at everything.”
—Ryan Tracy
WASHINGTON—A Libyan
businessman working undercover for the U.S. lured the
suspected mastermind of the
deadly 2012 Benghazi attacks
into a trap laid by American
special forces.
The 40-year-old informant,
identified only by the pseudonym Ali Majrisi, testified in
federal court here that he
plied the militant leader, Ahmed Abu Khatallah, with
money and a car and led him
to the house where he was
captured before being spirited
to a Navy ship and taken to
the U.S. for trial.
The informant took the witness stand Monday and Tuesday in Mr. Khatallah’s trial. His
testimony provided a rare account of a critical insider’s role
in the U.S. operation that captured Mr. Khatallah.
Mr. Khatallah, 46, faces 18
charges related to the Sept. 11,
2012, attack on the U.S. special
mission and a Central Intelligence Agency facility in Libya.
He is accused of planning and
setting in motion the assault
that killed Ambassador Christopher Stevens, State Department Information Management Officer Sean Smith and
two CIA contract security officers, Tyrone Snowden Woods
and Glen Anthony Doherty.
Mr. Khatallah, who has
pleaded not guilty, could be
sentenced to life in prison if
convicted of the most serious
offenses. His trial began Oct.
2, and jurors have heard vivid
testimony from State Department and CIA personnel who
survived the assaults, as well
as Libyans who have linked
Democrat Phil Murphy, above, with his running mate Lt. Gov.elect Sheila Oliver, on Tuesday defeated Republican contender
Kim Guadagno to succeed New Jersey Gov. Chris Christie.
Mr. Northam won with the
support of Democrats like Corinne Vigen, a college student
galvanized by her concerns
about Mr. Trump.
“I’m a woman, and Trump’s
not going to do anything for
me,” she said. “I felt the Republican nominee...was just going to
be an extension of that.”
The Democratic Party hierarchy had grown anxious in the final days of the campaign as late
polls indicated that the race had
gotten tighter than many expected in a state that has been
trending their way.
The final weeks of the cam-
paign focused on immigration
issues that galvanized the GOP
base but divided Democrats.
Mr. Gillespie, a former lobbyist
and former chairman of the
Republican National Committee, ran an ad that portrayed
Mr. Northam as supporting
sanctuary cities, a policy Mr.
Gillespie claimed allowed the
MS-13 gang to spread. The ad
was denounced by Democrats
as fear mongering. But after
Mr. Northam said he opposed
sanctuary cities, he was criticized by a liberal group.
State and national Democratic leaders as well as grass-
roots activists made a big getout-the-vote push, driven in
part by concern that black voters and the party’s left flank
might not turn out in sufficient
numbers. Former President Barack Obama, a Democrat, made
one of his first political appearances since leaving the White
House at a Northam rally in
Richmond. Mr. Perriello, who
endorsed Mr. Northam shortly
after the primary, campaigned
across the state for his one-time
rival.
Mr. Gillespie had challenges
of his own, as he navigated
cross currents within the Republican Party. He campaigned
on Trump issues and themes
such as combating crime and illegal immigration, and Mr.
Trump tweeted in support of
him Election Day morning.
“Ralph Northam will allow
crime to be rampant in Virginia,” the president wrote.
But the president didn’t appear on the campaign trail with
Mr. Gillespie, whose goal was to
be moderate enough to appeal
to independent voters and
Trumpian enough to appeal to
the many GOP voters who
backed Corey Stewart, the primary rival who nearly defeated
him. Mr. Gillespie’s loss was a
sign of how hard it is to walk
that line.
The Democratic Party has
struggled to rebuild in the wake
of its crushing 2016 defeat. National party leaders recently
erupted in bickering that reopened divisions created during
the presidential primary. Former interim party chairwoman
Donna Brazile, in a new book,
made fresh allegations that the
party apparatus was rigged in
favor of Hillary Clinton.
Part of Mr. Northam’s victory
was his ability to reach out to
voters like Amman Makonnen, a
Democrat from McLean, Va.,
who had backed Mr. Perriello in
the primary.
“They have to stay united,
the Democrats,” he said.
—Kate King
contributed to this article.
Mr. Khattalah to the attacks.
Mr. Khatallah was the alleged leader of the extremist
brigade Ubaydah Bin Jarrah
and grew to despise the U.S.
“with a vengeance,” Assistant
U.S. Attorney John Crabb told
jurors in his opening statement.
Mr. Khattalah’s defense lawyers say he played no role in
the attacks and was wrongly
“abducted” from Libya. They
have questioned the informant’s
motivations for testifying and
during cross-examination Tuesday pressed him on the money
he has been paid by the U.S.
government and whether it has
influenced his testimony.
Mr. Majrisi was paid as
much as $5,000 a month while
in Libya and given $7 million
shortly after Mr. Khatallah’s
capture. The Federal Bureau of
Investigation has since picked
up his living expenses in the
U.S., including his wife’s English lessons.
The informant, a burly 40year-old with a shaggy, graying beard, testified through an
Arabic-language interpreter
that he agonized over whether
to help the investigation when
U.S. officials approached him
in the waning months of 2012.
“It was a really hard decision
to make,” he testified. “On the
one side you have the U.S. Embassy and the people investigating the incident. On the other
side, there were other people,
very well-known throughout
Benghazi as being extremists.”
He ultimately decided to
help, he said, because the U.S.
helped topple his country’s
dictator, Moammar Gadhafi,
and he disliked the terrorists
who were sowing chaos.
By 2013, Mr. Majrisi was
gathering evidence against Mr.
Khatallah and possibly others
who participated in the attacks. Last month, the U.S.
government announced the
capture of another Libyan, 46year-old Mustafa al-Imam,
who was brought to the U.S.
on federal charges stemming
from the killings of Mr. Stevens and the other Americans.
Mr. al-Imam’s attorney, Matthew Peed, didn’t respond to a
request to comment. A detention hearing has been scheduled for Thursday.
It isn’t clear if the informant will play a role in Mr. alImam’s prosecution.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | A5
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A6 | Wednesday, November 8, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Tax Bill’s Effects Uneven
BY RICHARD RUBIN
WASHINGTON—The Republican $1.4 trillion tax cut proposal making its way through
Congress hits U.S. households
unevenly.
Most are likely to see lower
tax bills under the Republican
plan, but millions are at risk of
higher taxes immediately, with
the number losing out growing
over time, according to analyses of the plan by Congress’s
nonpartisan Joint Committee
on Taxation.
In 2019, for example, 84% of
households making between
$75,000 and $100,000 annually
would get a tax cut of $100 or
more, but 11% in that same income group would get a tax increase of $100 or more. Among
households making $1 million
or more, 76% get a tax cut but
24% get a tax increase.
By 2027, less than half of U.S.
households would get tax cuts
and an additional one-third
would see their tax liability
change by less than $100, while
nearly one in five households
would have a tax increase.
The uneven responses across
households are because of the
way the tax bill is structured. It
is a complex mix of tax-rate
cuts, deductions eliminated and
credits that expire over time.
Households fare differently depending on where they live,
how much money they make,
how many children they have,
whether they expected to borrow extensively for a home and
many other factors.
Tax Cuts Fade Over Time
The House GOP tax plan would produce tax cuts on average in the
first few years, but in the future some income groups would pay
more and within groups, some households lose out.
Tax decrease
INCOME
Tax increase
As measured in millions of dollars
2019
2021
2023
2025
2027
Less than
$10,000
-$557
-$422
$100
-$80
-$518
$20,000
-2,435
-2,084
638
268
-726
$30,000
$40,000
-3,001
-2,636
1,170
1,070
431
-4,181
-3,695
653
388
-443
$50,000
-5,532
-5,281
-300
-679
-1,902
$75,000
-20,921
-20,189
-6,359
-8,103
-11,501
$100,000
-19,483
-18,029
-4,475
-6,128
-9,545
$200,000
-57,066
-51,751
-17,442
-23,309
-34,747
$500,000
-26,446
-18,670
3,405
-2,228
-12,881
$1 million
$1 million
and above
-10,912
-7,806
744
-2,883
-7,337
-41,557
-33,346
-8,885
-21,694
-36,617
Notes: In millions of dollars. Uses broad definition of income. Doesn't include estate tax.
Source: Joint Committee on Taxation
THE WALL STREET JOURNAL.
Selling a tax bill with a mix
of winners and losers is what
has made a comprehensive tax
overhaul impossible to pass
through Congress since 1986.
Republicans are optimistic
about the bill’s chances and
they are eager to finish by the
end of the year.
The JCT study and outside
analyses are yielding a war of
words between Republicans
and Democrats, with both sides
talking past each other about
research they don’t dispute. Republicans note, correctly, that
the tax bill cuts taxes on aver-
age for all income groups, particularly in the first few years.
Democrats note, correctly, that
many people would pay more,
even though most are better off
on average, and that the tax increases expand over time.
A separate JCT study released last week underscored
how the benefits of the tax bill
fade for many households over
time. In 2019, households making $20,000 to $30,000 would
get $3 billion in tax cuts but a
tax increase by 2023 of $1.2
billion. Households making
$500,000 to $1 million would
get tax cuts of $10.9 billion in
2019 but a tax increase of $744
million by 2023.
The House Ways and Means
Committee worked through the
bill for a second day Tuesday
and isn’t expected to finish until
Thursday. It rejected a Democratic amendment to preserve
individual reductions for state
and local taxes. Republicans
may make further changes.
“We can help the typical
family in our country, that
family of four, five, six that is
struggling,” said Rep. Carlos
Curbelo (R., Fla.).
Democrats note that some
lower-income people would see
their taxes rise and the money
would in effect fund tax cuts for
high-income households and
the repeal of the estate tax.
“The notion that it’s basically for the middle class is untrue,” said Rep. Sander Levin
(D., Mich.).
Republicans set a $1.5 trillion cap on the size of the tax
cut. To encourage economic
growth they prioritized a permanent corporate tax-rate cut
to 20% that by itself lowers
revenue by about $1.5 trillion.
To keep the plan within its
$1.5 trillion cap, Republicans
proposed repealing the personal
exemption that lowers taxable
income by $4,150 for each tax
filer, spouse and dependent in
2018.
They also would eliminate or
curtail dozens of other deductions and credits, including the
deduction for state and local income and sales taxes.
Senate Aims to
Keep Deduction
BY SIOBHAN HUGHES
Senate Republicans aim to
preserve a popular tax deduction for household medical expenses when they release
their version of a tax plan
later this week, parting ways
with House lawmakers on a
proposal that costs about
$182 billion over a decade, according to people familiar
with the matter.
They are also considering
delaying the start of a cut in
the top corporate tax rate to
20% from 35% but hadn’t decided on the matter as of
Tuesday evening.
Those decisions are part of
the complex trade-offs the
GOP is considering as it tries
to draft a historic overhaul of
the U.S. tax code that would
reduce business taxes in an
effort to spur economic
growth, and cut individual tax
rates. To pay for those cuts,
Republicans are trying to get
rid of costly deductions and
exemptions in the tax code,
but they are facing blowback
from consistencies that want
to keep popular provisions.
“With high health-care
costs, you want to be able to
offset that,” said Sen. Lisa
Murkowski (R., Alaska) of the
ability of households to deduct large medical expenses
in their calculations of individual income taxes.
Ms. Murkowski appeared to
wince when asked about eliminating the medical-expense
deduction on Tuesday. “People look at that and say that
is one area that can make a
difference for them,” she said.
“There is certainly an understanding of its importance,” Sen. Bill Cassidy (R.,
La.), who sits on the Senate
Finance Committee, said on
Tuesday.
In all, House Republicans
want to get rid of $1.3 trillion
worth of individual income
tax deductions over a decade,
including deductions for
home-mortgage interest and
state and local taxes.
After complaints spread
about eliminating the medical-expense deduction, the
Senate Finance Committee
was likely to preserve it, the
people familiar with the matter said.
Another idea that could get
attention is full elimination of
the deduction for state and local taxes, instead of taking the
approach of the House, which
preserved a property-tax deduction, while limiting the
amount of the deduction to
$10,000.
During a debate over the
Senate budget, Republicans
backed an amendment calling
for the full repeal of the state
and local deduction, which
would give them revenue they
could use to preserve the
medical-expense deduction.
BY ANNE STEELE
Organizers of the first major outdoor festival to be held
on the Las Vegas Strip since
last month’s mass shooting are
moving key events and ramping up security in an effort to
keep participants and spectators safe while creating an upbeat atmosphere.
Next weekend’s Rock ’n’ Roll
Las Vegas Marathon, where
bands play on stages at regular
intervals along the 26.2-mile
route, had been slated to kick
off with a starting-line concert
by the Goo Goo Dolls—playing
at the same grounds as the
Route 91 Harvest music festival
where a gunman killed 58 and
injured at least 500.
The ’90s band will now play
the night before the race at the
Las Vegas Festival Grounds.
Andy Walsh, a captain with
the Las Vegas Metropolitan Police Department who is heading up marathon preparations,
said the October Vegas shooting and the Oct. 31 terrorist attack in New York informed
law-enforcement decisions.
“This year we’re on that list
of cities that have proven to be
vulnerable to somebody who’s
determined to do something,”
he said. “We use that in planning and strategy for this
event, and it will be part of all
future events.”
The Rock ’n’ Roll Marathon—actually a series of
races, including a 5K, 10K, halfand full marathon over the
weekend of Nov. 11-12—is expected to draw more than
50,000 runners and spectators.
The event, now in its ninth
year, is traditionally marked by
a headliner concert before the
start of the races, with stages
featuring local bands playing
at each mile of the route. This
year, the first 2½ miles of the
race—which stretches along
the site of the shooting and
past the “Welcome to Las Vegas” sign—will have no music
and instead serve as an extended moment of silence.
“In such close proximity to a
tragic event, we didn’t want to
be hosting a kickoff celebration,” said Josh Furlow, president of the Rock ’n’ Roll Marathon Series. “But the drumbeat
going through town is ‘Vegas
Strong,’ so the first checkmark
was: ‘Yes, we’re going to be doing the event and hosting athletes from all over the world.’ ”
The new route isn’t as
spread out as in years passed,
JOHN LOCHER/ASSOCIATED PRESS
Feeling Vulnerable,
Las Vegas Raises
Festival Security
Organizers have ramped up police presence for the Rock ’n’ Roll Las Vegas Marathon and opening concert. Above, the marathon in 2014.
helping law enforcement concentrate resources. Capt. Walsh
said 350 police officers will be
present throughout the weekend, while 180 police vehicles
as well as trucks and barricades will “harden the intersections and make it impossible
for a vehicle to pass through.”
Surveillance cameras and
sniper nests will be planted
along the route, and a police
helicopter will hover overhead.
Stages along the route will be
equipped to alert the crowd
with instructions in case of an
emergency. And Mr. Furlow
said runners will receive instructions before the event on
how much time they will need
to navigate increased security.
Fewer than 100 runners
have sought refunds since the
Vegas attack, and registration
is on par with previous years,
said Dan Cruz, a marathon
spokesman.
The starting location for
the marathon and half-marathon has also been moved,
from outside the Mandalay
Bay Resort & Casino, where
the gunman shot from the
32nd floor, to outside the New
York-New York Hotel and Casino, about a mile up the road.
Access to the starting line will
be restricted to runners.
The new location is too
small to accommodate a major
concert. “The real estate is just
not available,” Mr. Furlow said.
“We don’t want to run into
overcrowding and congestion.”
An opening act will instead
kick off the concert in tandem
with the start of the 5K on Saturday night, followed by the
Goo Goo Dolls’ performance.
The concert is free and open to
the public, but there will be a
security perimeter around the
festival grounds. Behind the
scenes, organizers will conduct
surveillance and operate a central command station.
pany this year to beat back an
activist, along with General
Motors Co. and Procter &
Gamble Co., although P&G’s result last month was so close
that it is in dispute. While activists have continued to shake
up corporate giants through
brokered settlements, the companies have won high-profile
fights at the polls, reaffirming
to some that a firm whose
stock hasn’t plunged and
which has a set plan to improve can win some time with
shareholders.
In the ADP fight, Mr. Ackman had said the company fell
behind technology-heavy startups and needed to improve its
margins. Mr. Rodriguez countered that ADP was already
improving technology and was
on a path to increase margins.
From the start, ADP sought
to put Mr. Ackman on the defensive, with advisers and Mr.
Rodriguez confident its performance would deflect a shareholder he called “the loudest
voice in the room.”
ADP’s stock has performed
well compared with the S&P
500 during Mr. Rodriguez’s
tenure and rose 1.3% Tuesday.
The two sides even argued
about the final tally of votes, a
dispute that echoed several
earlier dust-ups the companies
had over numbers. Mr. Ackman
said the tally was closer than
it appeared, citing that he won
about 81 million votes while
ADP director Eric Fast, who received the lowest tally among
sitting board members, had
gotten about 183 million. If the
contest was just between those
two, Mr. Ackman said, he
would only have lost 69% to
31%. A total of about 326 million shares were cast in the
election.
Even Mr. Ackman’s efforts
to address the meeting didn’t
go smoothly. He sat in the
middle of the pack in the
meeting in the basement at
ADP’s headquarters and was
offered a chance to comment
toward the start of the meeting. He stood up and said he
had hoped to speak at the end
instead. He was told no. He
said he was “delighted to be
here” and sat down.
At the end of the meeting,
the sides quickly debated before he was given a chance to
speak, with Mr. Rodriguez winning a laugh by forcing Mr.
Ackman to form his remark as
a question in order to follow
meeting procedures.
FROM PAGE ONE
ADP
Continued from Page One
Carlos Rodriguez disagreed,
closing the meeting with a
parting shot from the stage.
“Bill…despite your characterization of the result as
close, what I was told was this
was an ‘ass-whooping,’” he
said.
The fight between Mr. Ackman and ADP was nasty from
the very start. ADP in August
announced Mr. Ackman’s Pershing Square Capital Management LP had built a stake, a
release that pre-empted the
activist investor’s own disclosures. And it rejected his initial demands on a morning Mr.
Ackman said he was headed
for vacation. Mr. Rodriguez, in
a TV interview later in August,
called him a “spoiled brat.”
The barbs continued from
there, all the way through
Tuesday. In an interview after
the vote, Mr. Rodriguez stayed
on the offensive. He admitted
he had lost his cool with his
closing comment, but he said
Mr. Ackman’s campaign had
been insulting to his employees and he rejected the idea
that management was under
any more pressure than normal.
“Frankly, what Pershing
Square and Bill Ackman have
to say are a very small part of
the pressure on my day-to-day
life,” Mr. Rodriguez said. “Yes,
this battle’s over. We won.”
Mr. Ackman said it wasn’t
over and that the CEO’s comment wasn’t respectful of
shareholders of ADP, a $50 billion company that helps businesses handle repetitive HR
functions like payroll and
timekeeping.
“We are going to hold them
accountable,” Mr. Ackman said,
raising the likelihood of further tension, particularly if
ADP slips at all with the promises it made. “We are rooting
for ADP.”
He said he would be judged
as an investor on the stock
performance, not on whether
he won this proxy fight. Pershing Square holds about 2% of
the common stock and derivatives that would bring the
stake to about 8%.
Still, for Mr. Ackman, the
magnitude of Tuesday’s loss
raises new questions about his
ability to win support during a
period of turmoil for his fund,
which has struggled in recent
years and suffered a $4 billion
loss after a bad bet on Valeant
Pharmaceuticals International
Inc.
Mr. Ackman’s Pershing
Square has underperformed
for nearly three years, largely
because of the bruising loss on
Valeant. Its main fund has lost
24% since 2014, compared with
a one-third climb in the S&P
500. The fund is roughly flat
this year through October,
while the S&P 500 rose 17%,
including dividends. He also
recently restructured his fiveyear bet against Herbalife Ltd.,
limiting potential losses as his
position had continued to lose
money.
Mr. Ackman points instead
to his long-term record, saying
Pershing Square has returned
more than 500% since its January 2004 start, compared
with the S&P 500’s roughly
200%.
In Tuesday’s vote, large ADP
shareholders Vanguard Group
and State Street Global Advisors threw their weight behind
the company, according to
people familiar with the matter. But BlackRock Inc., ADP’s
second-biggest investor, voted
its shares in favor of Mr. Ack-
Turnaround
Automatic Data Processing shares
rose Tuesday after six straight
daily declines.
Tuesday
$112.75
s1.3%
$120
115
110
105
100
Sept.
Oct.
Nov.
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
man, a key vote of confidence
for him, the people said.
Mr. Ackman’s defeat Tuesday was worse than in a typical proxy fight where the activist lost, according to Proxy
Insight. The margin between
Mr. Ackman and the closest
ADP director was greater than
30 percentage points, compared with an average management win of 23 percentage
points in six similar votes this
year.
ADP is the third major com-
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THE WALL STREET JOURNAL.
NY
Wednesday, November 8, 2017 | A7
WORLD NEWS
Saudis Target Up to $800 Billion in Assets
Authorities have
detained businessmen
and frozen bank
accounts in crackdown
Running Low
Saudi Arabia is heavily
dependent on oil exports, and
government revenue has taken
a hit as crude prices have
tumbled in recent years.
The Saudi government is
aiming to confiscate cash and
other assets worth as much as
$800 billion in its broadening
crackdown on alleged corruption among the kingdom’s
elite, according to people familiar with the matter.
Oil revenue
1.25 trillion riyals
1.00
0.75
0.50
By Margherita
Stancati in Beirut and
Summer Said in Dubai
0.25
0
2006
’12
’14
’16
THE WALL STREET JOURNAL.
Crown Prince Mohammed bin Salman, left, has said tackling corruption is necessary to overhaul Saudi Arabia’s oil-dependent economy.
Lebanon Premier’s
Trip Dispels Rumors
Of His Captivity
BEIRUT—Lebanon Prime Minister Saad Hariri left Saudi Arabia
for the United Arab Emirates on
Tuesday, dispelling rumors that
he was being held by the kingdom against his will since he resigned over the weekend.
Mr. Hariri’s Saudi patrons
now appear to be moving to
isolate Lebanon, much as they
did to Qatar, in this instance because of Iran’s influence over the
country through its proxy Hezbollah. The resignation places
Lebanon at the forefront of the
regional contest between Iran
and Saudi Arabia.
Mr. Hariri, the political leader
of Lebanon’s Sunnis, has close
ties to the Sunni monarchy of
Saudi Arabia, while Hezbollah is
funded and armed by Shiite Iran.
Hezbollah’s influence over the
Lebanese government has grown
steadily over the past decade.
“We won’t tolerate Lebanon’s
involvement in a war against the
kingdom and we will use political
and all other methods to confront it,” Thamer al-Sabhan, the
Saudi minister of state for Gulf
affairs, said in an interview with
Saudi-owned Al Arabiya.
Mr. Hariri announced from Riyadh Saturday he was resigning as
prime minister, citing Iran’s power
over the Middle East and saying
he felt his life was endangered.
Rumors spread he was being held
in Saudi Arabia against his will.
But Monday, Mr. Hariri
tweeted a picture of himself
meeting with Saudi King Salman that was seen as an attempt to dispel the rumors. On
Tuesday, Mr. Hariri’s office said
he had left Saudi Arabia for
the United Arab Emirates—a
close ally of Riyadh. He returned to Riyadh after the
meeting, according to his office.
Mr. Hariri’s resignation has
yet to be accepted by the president, who said he would do so
after Mr. Hariri comes to Lebanon, meets with him and divulges the reasons behind it.
—Nazih Osseiran
to three trillion riyals from
these people. That’s the number they are talking about,” a
person close to the government said.
Much of that money is
abroad, which will complicate
efforts to reclaim it, people familiar with the matter said. But
even a portion of that amount
could help Saudi Arabia’s finances. A prolonged period of
low oil prices forced the government to borrow money on
the international bond market
and to draw extensively from
foreign
reserves,
which
dropped from $730 billion at
their peak in 2014 to $487.6 billion in August, the latest avail-
able government data.
The arrests were ordered
by a newly established anticorruption agency headed by
Prince Mohammed.
The crown prince “needs
cash to fund the government’s
investment plans,” political
risk advisory firm Eurasia
Group said in a note Monday.
“It was becoming increasingly
clear that additional revenue
is needed to improve the economy’s performance. The government will also strike deals
with businessmen and royals
to avoid arrest, but only as
part of a greater commitment
to the local economy.”
Representatives for the
Programmers available for a song in inflation-racked country
CARACAS, Venezuela—The
World Bank ranks Venezuela
187th in terms of ease of doing business, just behind
war-torn South Sudan. But
Gabriel Jiménez says his crisis-hit native country is a
great place to hire people for
his tech startup.
Mr. Jiménez, 27, has a
small business registered in
Miami that subcontracts
work like webpage design,
developing apps, and corporate network maintenance
for clients in the U.S., Mexico, Australia and elsewhere.
All of his programmers are
in Venezuela, where the local
currency’s free fall has made
labor costs so low in dollar
terms that the country’s
minimum wage now amounts
to about $10 a month.
Trying to run any kind of
business in Venezuela is a
challenge. State-censored internet is unreliable, and
dealing in foreign currency
falls into a legal gray area
because of rigid exchange
controls. But those like Mr.
Jiménez willing to take the
risk can secure the services
of a Venezuelan programmer
for as little as $100 a month.
An estimated two million
of the best-educated Venezuelans have fled the country’s
economic and social deterioration in the past two decades. But for the many professionals reluctant to
abandon their homeland, remote work paid in greenbacks has become a path to
survival at a time when multinationals from General Motors to Clorox have shut
down facilities there.
“There are still many good
workers in Venezuela, and if
you don’t give them a vision
for the future, they’re all going to leave,” said Mr. Jiménez, who returned to Caracas
in 2015 after completing university studies in the U.S.
For the programmers, salaries paid in dollars, however paltry, are attractive in
a country with the world’s
highest inflation rate and a
currency that has lost 98% of
’10
Source: Saudi Arabian Monetary Authority
Venezuelans Draw Tech Work
BY KEJAL VYAS
’08
Note: 1 riyal=$0.27
SAUDI PRESS AGENCY/REUTERS
Several prominent businessmen are among those who have
been arrested in the days since
Saudi authorities launched the
crackdown on Saturday, by detaining more than 60 princes,
officials and other prominent
Saudis, according to those people and others.
The country’s central bank,
the Saudi Arabian Monetary
Authority, said late Tuesday
that it has frozen the bank accounts of “persons of interest”
and said the move is “in response to the Attorney General’s request pending the legal cases against them.”
The purge is the most extensive of the kingdom’s elite
in recent history. Crown
Prince Mohammed bin Salman,
the son of King Salman, was
named heir to the throne in
June and has moved to consolidate power. He has said that
tackling corruption at the
highest level is necessary to
overhaul what has long been
an oil-dependent economy.
The crackdown could also
help replenish state coffers. The
government has said that assets accumulated through corruption will become state property, and people familiar with
the matter say the government
estimates the value of assets it
can reclaim at up to three trillion Saudi riyal, or $800 billion.
“They reckon that they
could get around two [trillion]
Other
Dirt Cheap
Galloping inflation, a collapsing local currency and state
subsidies keep living expenses absurdly low in Venezuela for
those buying in dollars.
Currency black market
Bolivars a dollar buys, 2017
Monthly utilities in Venezuela*
Mobile phone plan†
4,175 bolivars
9.03¢
10,000
Urban trash collection
1,323 bolivars
2.86¢
20,000
Basic internet service
307 bolivars
0.66¢
0
Home fixed-line phone service
0.15¢
68 bolivars
30,000
40,000
Note: chart
inverted to show
weakening bolivar
50,000
J F MA MJ J A S O N
Electricity
64 bolivars
0.14¢
Home water service
50 bolivars
0.11¢
Home gas service
10 bolivars
0.02¢
*Average of Venezuela’s five biggest cities in October 2017 †1.2GB data and 200 minutes
Note: 46,238 bolivars=$1 converted on black market
Sources: DolarToday.com (currency); Econométrica (prices)
THE WALL STREET JOURNAL.
its black-market value over
the past two years.
Venezuela is “in a fullblown economic, humanitarian, and political crisis with
no end in sight,” the International Monetary Fund said
recently, with an economy
that it predicts will have
contracted 35% between January 2014 and Jan. 1, 2018.
But annual inflation topping
1,000% and government subsidies for fuel and utilities
Outsourcers willing to
take a risk can secure
a programmer for as
little as $100 a month.
mean living expenses are absurdly cheap for those buying in dollars. A lavish seafood dinner, for instance, can
cost just a few bucks.
“If it weren’t for programming, I’d have left the country a long time ago,” said
José Huerta, 27, who runs a
consulting firm with three
employees from a home office, staying afloat from weband mobile-app development
outsourced by U.S. clients.
Gauging how much work is
outsourced to Venezuelans is
difficult because much of it is
unreported to avoid running
afoul of foreign-exchange
controls. Payments are often
settled through bank transfers outside the country or
through vehicles like PayPal.
Starting with three programmers in a roach-infested
Caracas apartment a year
ago, the company Mr. Jiménez founded, The Social Us,
now has 22 employees, all in
Venezuela even though the
company is registered in Miami. They design webpages,
manage social media and develop software and hardware.
All of the programmers
are independent contractors
for Mr. Jiménez’s Miami
company, allowing them to
be paid in dollars and isolating the company from Venezuela’s generous labor laws.
“The Venezuelan labor
force has converted into a
sort of maquila [outsourced
factory] for the information
and marketing world,” said
Luis Pedro España, a sociologist at Andrés Bello Catholic
University in Caracas. “It’s
very underpaid work even
though the workers are very
capable. We can only compare ourselves to Cuba.”
Saudi government didn’t respond to requests to comment.
Saudi Arabia’s minister of
commerce, Majid al Qasabi, on
Tuesday sought to reassure
the private sector that the
corruption
investigation
wouldn’t interfere with normal
business operations.
In its statement on Tuesday,
the Saudi central bank said that
individual accounts had been
frozen, not corporate accounts.
The central bank sent a list
of hundreds of names to lenders, asking them to freeze any
accounts linked to them, according to people familiar
with the matter.
“These are just the initial
stages of either asset freezes
or arrests. More people are expected to be impacted as the
investigation unfolds,” a Saudi
official said.
As a precautionary measure,
authorities have banned a large
number of people from traveling outside the country, among
them hundreds of royals and
people connected to those arrested, according to people familiar with the matter.
The government hasn’t officially named the people who
were detained.
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A8 | Wednesday, November 8, 2017
* *****
THE WALL STREET JOURNAL.
WORLD NEWS
Xi Hosts From Position of Strength Sanctions
Bill Aims
Powerful president,
U.S. counterpart to
discuss investment,
trade and North Korea
ALY SONALY SONG/REUTERSG/REUTERS
President Donald Trump arrives in China with a first-year
record that includes sagging
approval ratings and an investigation into Russia’s connections to his campaign, but also
a surging economy.
By Michael C. Bender
in Seoul
and Jeremy Page
and Eva Dou in Beijing
Mr. Trump will be welcomed in Beijing on Wednesday by President Xi Jinping,
who is fresh from a Communist
Party congress that cemented
his status as China’s most powerful leader in decades, but
who also faces some economic
headwinds as the government
seeks to build China into a rich
superpower by 2050.
That study in contrast will
People walk in front of posters depicting President Xi Jinping, left, and Mao Zedong in Shanghai.
frame Mr. Trump’s 36 hours in
China—a day and a half of talks
at the center of the president’s
10-day swing through Asia.
The immediate purpose of
Mr. Trump’s five-country campaign is pressuring North Korea to abandon its nuclear pro-
gram. But his talks with Mr. Xi,
which will also focus on trade
and investment, have broader
implications for American interests in Asia. The interactions between the leaders of
the world’s two largest economies could have ripple effects
well beyond the Kim Jong Un
regime in Pyongyang.
“These leaders are somewhat
mismatched in the strength and
clarity of their current political
positions,” said Mira RappHooper, senior research scholar
at the Paul Tsai China Center at
Yale Law School. “As Trump
heads to China, he will find Xi
at the pinnacle of his power,
with some significant homecourt advantages.”
Mr. Trump says he is at no
disadvantage when it comes to
talks on the South China Sea,
the U.S.’s trade deficit with
China or how to exert pressure
on North Korea.
Mr. Trump declined to talk
about his specific goals in Beijing.
The president’s specific
aims in Beijing are somewhat
of a mystery in China, said
Christopher Johnson, a former
senior China analyst for the
Central Intelligence Agency.
Some view Mr. Xi’s consolidation of power and Chinese
confidence in their leader as
potential advantages for Mr.
Trump. “One downside of
heavy consolidation of power
is that there’s no one else to
blame inside your system,” Mr.
Johnson said.
China’s JD.com to import beef
from U.S........................................ B4
Continued from Page One
menting United Nations Security Council sanctions against
its neighbor, but Beijing is
wary of taking steps that
could lead to the North Korean regime’s collapse and
spark a humanitarian crisis
on its border.
In his speech, Mr. Trump
painted a bleak picture of life
in North Korea, saying the
“country is ruled as a cult.”
Citizens, he said, bribe government officials to be sold
into slavery rather than remain in their own country.
“Why would China feel an
obligation to help North Korea?” Mr. Trump said.
The pointed language from
Mr. Trump followed more conciliatory comments he made a
day earlier, when he stood
alongside South Korean President Moon Jae-in at a joint
news conference. Mr. Moon,
South Korea’s first leftist
leader in almost a decade, has
said in recent comments that
the nuclear standoff on the
Korean Peninsula can only be
resolved peacefully.
Mr. Trump spent much of
Wednesday’s speech lavishing
praise on South Korea.
He noted the growth of the
economy and trade in the decades since the war, and said
that South Koreans can expect
to live into their 80s today, instead of only into their 50s
two generations ago.
The president, an avid
golfer, also noted the success
of South Koreans in the sport,
drawing laughter from lawmakers when he mentioned
women from the country who
finished in the top four spots
at the tournament held earlier
this year at Trump National
Golf Club in New Jersey.
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
KOREA
President Donald Trump, left, on the second leg of a five-nation Asia trip, meets South Korean President Moon Jae-in in Seoul.
“What you have built is
truly an inspiration,” he said.
Still, much of the speech
was directed at South Korea’s
northern neighbor, delivering
a message to Mr. Kim that his
acquisition of weapons is putting his regime on a treacherous course.
“The weapons you are acquiring are not making you
safer,” Mr. Trump said. “They
are putting your regime in
grave danger. Every step you
take down this path increases
the peril you face.”
The tone was a shift from
Tuesday, when the president
opened the door to negotiations with North Korea.
“It makes sense for North
Korea to come to the table
and make a deal that is good
for the people of North Korea
and for the world,” he said
during the news conference
‘I do see certain
movement’ on the
Pyongyang nuclear
standoff, Trump says.
with Mr. Moon.
Mr. Trump also alluded to
American military power. “You
know, we sent three of the
largest aircraft carriers in the
world, and they’re right now
positioned. We have a nuclear
submarine also positioned,” he
said in comments aimed at
starting a diplomatic process
to address North Korea’s
weapons. “We have many
things happening that we
hope, we hope—in fact, I’ll go
a step further—we hope to
God we never have to use.”
The call for negotiations
was a change from a little over
a month ago, when Mr. Trump
said Secretary of State Rex
Tillerson was “wasting his
time trying to negotiate with
Little Rocket Man,” a reference to Mr. Kim. The president
also has warned about unleashing “fire and fury” unless
Pyongyang curtails its nuclear
program.
There was no immediate
North Korean reaction through
state media to Mr. Trump’s
comments.
Early Wednesday, Mr.
Trump attempted a surprise
visit to the demilitarized zone,
but heavy fog forced his helicopter to return to Seoul. Mr.
Moon had intended to join Mr.
Trump there, in what would
have been the first joint visit
to the DMZ by a U.S. and a
South Korean leader, White
House press secretary Sarah
Huckabee Sanders said. She
said the plan showed the
strength of the relationship
between the two countries.
U.S. Allies Worry Trump Will Pull a Nixon in China
CHINA’S WORLD
By Andrew Browne
SHANGHAI—In a pointed
message ahead of Donald
Trump’s first presidential
swing through Asia, a Chinese shipyard launched the
region’s largest dredger.
The 17,000-ton Tiankun,
dubbed the “magic islandmaker,” can rip holes in the
seabed roughly equivalent to
three Olympic-size swimming pools
every hour
and signals a
new phase in
China’s South
China Sea construction that
intimidates neighbors and
directly challenges U.S. regional leadership.
It is also a reminder that
high on Chinese President Xi
Jinping’s wish list for the
trip is an acknowledgment of
China’s enlarged ambitions
in its own backyard vividly
symbolized by airstrips,
ports and military facilities
XU CONGJUN/XINHUA/ZUMA PRESS
built atop half-submerged
reefs in the world’s busiest
commercial waterway.
In Beijing, Mr. Trump will
seek help on North Korea,
his main priority, as well as
trade. China sees an opportunity for deal making.
T
he question for Asian
governments anxious
about an impulsive U.S.
president weakened by investigations into Russian involvement in the 2016 election and looking for a foreignpolicy success: Will he be
tempted to strike a bargain?
Mr. Xi has pushed for
what he calls a “new type of
great power relations” with
the U.S., an innocuous-sounding slogan but one freighted
with deep implications, not
least that Washington would
start treating China as an
equal and cede ground on its
territorial demands in the
South China Sea and East
China Sea. The arrangement
could put Taiwan in play as
another of China’s “core interests” to be accommodated.
Such diplomacy would essentially create a G-2: the
U.S. and China carving up
the globe between them.
Barack Obama rebuffed
the idea as endangering U.S.
alliances in the region.
In recent days, the Trump
White House has signaled it
The Tiankun dredging vessel, seen in Qidong, is the region’s largest.
will push back, too. Rex Tillerson, the secretary of state,
has spoken of a “free and
open Indo-Pacific region” as
a counter to a Sino-centric
order. There is talk of reviving a more formal grouping
of the region’s big democracies—the U.S., Japan, Australia and India—which to China
looks like a strategy to contain its advance. And the U.S.
Navy has stepped up freedom-of-navigation patrols
around the artificial islands.
Still, China regards Mr.
Trump as a businessman open
to pragmatic compromises.
Mr. Trump is gushing
about his counterpart, telling
Lou Dobbs on the Fox Business Network after Mr. Xi’s
elevation to Mao-like status
at last month’s party congress
that “some people might call
him the king of China.”
C
Ui
Tiankai, the Chinese
ambassador to Washington, has promised
Mr. Trump a “state visitplus.” He knows that the
grandeur of the Chinese capital has a way of warping the
perspective of visiting U.S.
leaders. Nixon was starstruck by the tyrant Mao. In
engineering his “opening to
China,” he not only shocked
Taiwan, but also went behind Japan’s back, giving
America’s closest Asian ally
almost no notice of the historic shift—a point that rankled in Tokyo for decades,
and helps explain Prime Min-
ister Shinzo Abe’s eagerness
to court Mr. Trump today.
Mr. Abe’s solicitous diplomacy reflects a long fear in
Japan that Washington will
do another deal with Beijing
over its head to reshape the
region, as well as suspicion
of a president hostile to multilateral trade arrangements
and skeptical of alliances.
Expect Mr. Xi to deliver a
few helpful gestures on
North Korea at the summit.
Mr. Trump has been effective
at persuading Mr. Xi to sign
on to tough U.N. sanctions.
Additional Chinese moves,
however, won’t go far enough
to collapse the Pyongyang regime. Bottom line: Chinese
oil will keep flowing.
Anticipate, too, a raft of
deals for Mr. Trump’s CEO
entourage, although U.S. executives on the ground expect few breakthroughs on
structural problems.
Beijing is deft at mixing
soft diplomacy with the
harder variety. The Tiankun
dredger embodies Beijing’s
strategy of pushing Chinese
interests by any means short
of war.
Either way, Mr. Xi is likely
to calculate that time is on
his side. His newfound stature effectively makes him a
Chinese leader for life. Mr.
Trump’s hold on office is
more tenuous.
At Chinese
Banks
BY IAN TALLEY
WASHINGTON—Chinese
banks risk steep penalties for
aiding North Korea, under new
legislation that sailed through
the Senate banking committee
on Tuesday.
The new bill, unanimously
approved by the committee on
the eve of President Donald
Trump’s meetings with Chinese President Xi Jinping in
Beijing, is designed to bolster
U.S. enforcement of sanctions
and give the White House leverage as it presses the country to take stronger action
against North Korea.
The legislation requires the
U.S. Treasury Department to
sanction financial institutions
that knowingly handle transactions for North Korea. It
mandates sanctions for any
entities involved in any of the
country’s major revenue
streams, including coal, iron,
seafood and the export of foreign workers. And, in an effort
to intensify congressional
oversight of the administration’s sanctions policy, it requires the department to regularly report back to Congress
on North Korea.
“There are a whole lot of
holes in the sanctions regime,”
said Sen. Chris Van Hollen, a
Maryland Democrat and one of
the chief sponsors of the bill.
“In terms of enforcement and
teeth in those sanctions, we
really haven’t taken the measures we need to.”
The House has already
passed a similar bill, and given
the unanimous approval of the
Senate version in the banking
Committee, Mr. Van Hollen
said he expects Congress to
soon ratify the new sanctions
legislation.
U.S. and United Nations officials have complained that
China—which accounts for
90% of North Korea’s foreign
trade—hasn’t done enough to
stamp out illicit commerce
and finance with its neighbor.
Although the bill doesn’t
name China directly, lawmakers said it was crafted to target the Chinese banks that
manage most of North Korea’s
international accounts.
“China is always opposed to
the unilateral sanctions imposed by one country on other
countries outside the framework of the U.N. Security Council,” a spokesman at the Chinese
Embassy in Washington said.
In recent months, Beijing
has moved to close down some
of those trade and finance networks, including sending a notice to banks that they must
abide by U.N. sanctions. But
U.S. officials, lawmakers and
North Korea watchers have
said those efforts are insufficient and are wary about Beijing delivering on its promises.
WORLD WATCH
NATO
Cyberwarfare Power
May Be Added
NATO defense ministers will
this week discuss initiatives to
bolster their cyberwarfare capabilities, the alliance’s secretarygeneral said Tuesday, part of a
broader effort to offset rising
threats from Russia.
Key on the agenda will be
whether to allow member countries to provide offensive cyberweapons to North Atlantic
Treaty Organization commanders for use in military operations, allied diplomats said. Approval of the move is likely, but
not ensured, the diplomats said.
—Julian E. Barnes
AFGHANISTAN
Gunmen Attack
Kabul TV Station
Suspected Islamic State gunmen wearing police uniforms
stormed a private television station in the Afghan capital, setting off fighting with government forces that left at least
one guard dead and forced the
Pashto-language station off the
air in the latest attack on journalists. Authorities said more
than 20 people were wounded in
the attack. Both gunmen were
killed, they said.
—Habib Khan Totakhil
and Ehsanullah Amiri
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Wednesday, November 8, 2017 | A9
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THE WALL STREET JOURNAL.
A10 | Wednesday, November 8, 2017
IN DEPTH
Continued from Page One
pending arbitration claims
world-wide.
These high-end collection
services—which include litigation-funders like Burford, as
well as hedge funds and other
specialized investors—retrieve
what is owed for a share. They
are usually hired by people
who lack the resources or
don’t want to use their own
money to collect, even at a
time when high-profile scandals are making it more difficult to hide assets world-wide.
“It’s not like going to the
casino and cashing in your
chips,” said Mr. Hall, who cofounded a judgment-enforcement firm bought by Burford
in 2015. “After you go to court
or an arbitration center,
there’s nowhere to cash in
your paper.”
Mohammad Al-Saleh hired
Burford to help fund litigation
in the dispute and then to collect after Mr. Sargeant, his
former business partner,
wouldn’t pay the $28.8 million
judgment delivered by a jury
in a Florida court.
Mr. Sargeant didn’t want to
pay because he saw the verdict as just one battle in a
multi-front legal war with Mr.
Al-Saleh, said Chris Kise, Mr.
Sargeant’s lawyer at Foley &
Lardner LLP in Tallahassee,
Fla. Mr. Sargeant had tried,
unsuccessfully, to settle with
Mr. Al-Saleh, the lawyer said.
Mr. Sargeant, who declined
$2T
Pending arbitration claims worldwide are estimated at $2 trillion.
to comment, was convinced he
could win his counterclaims
against Mr. Al-Saleh in the U.S.
and abroad, Mr. Kise said.
After getting out of the
London taxi at Claridge’s that
day, Mr. Hall spotted Mr.
Sargeant in the hotel bar. He
perched by the entrance and
waited for the lawyers to arrive with the court order.
Mr. Hall, after graduating
from Oxford University, entered corporate law. He was
the first from his workingclass family to attend college
and was attracted by the pay.
He got bored, though, and
started working for a private
investigator.
The thrill of the chase
hooked him, Mr. Hall said,
along with the “crazy problem
solving” needed to seize polo
ponies or yachts from delinquent debtors.
Mr. Sargeant’s group sat a
corner table at the bar. A Burford colleague of Mr. Hall’s
slipped into a nearby seat and
listened surreptitiously as the
group talked about shopping
for
handmade
men’s
leather shoes.
Before long, Mr. Sargeant
and his companions headed
for the door. The lawyers still
hadn’t arrived. Mr. Hall and
his colleague left through another door, got in a taxi and
told the driver to follow Mr.
Sargeant’s car.
This account is based on
keep up as horror films have
broken into the mainstream.
Others have spent decades
avoiding scary movies, and view
the Wikipedia entries as a
chance to confront the phobia
within the safe confines of a
bare-bones, community-sourced
description.
“Some of [the reading] is cultural competence,” said Caitlin
Pierson, a 29-year-old adjunct
professor in Orlando and avid
plot-summary reader. When
friends talk about horror movies, “you can’t just stare at
them,” she said.
Ms. Pierson traces her hobby
to seven years ago, when she
was flipping channels and
glimpsed a scene from the 2006
haunted town movie, “Silent
Hill.” Since then, she’s kept up
with summaries for both installments of the series and expanded her reading to include
any movie she thinks might be
too scary or sad to digest.
“Sometimes I get scared
when reading them, sometimes
sad,” she said. Rarely does she
feel the need to explore further:
“Usually after I read about it,
I’m good.”
Wikipedia is a safe outlet for
the easily spooked, since horrific cinematic moments are told
in deliberately anodyne prose.
The shower scene from Alfred Hitchcock’s “Psycho,” for
instance, unfolds on screen as a
three-minute sequence featuring
78 separate shots, screeching violins and an unblinking Janet
Leigh corpse.
Here’s how Wikipedia describes the action: “As she is
showering, a shadowy figure
comes in and stabs her to death
with a chef’s knife.”
Anything more flowery is unnecessary, said Nick Bond, a
NASA mission support scientist
in Severna Park, Md., who
watches horror movies and updates Wikipedia summaries in
his spare time. “Subjective details are not only extraneous,
but in fact kind of inappropriate,” said Mr. Bond.
thousands of pages of
court filings and interviews
with people involved.
Opportunity knocks
Mr. Sargeant’s father, a former naval officer, started an
asphalt-storage and shipping
business in the 1980s,
Sargeant Marine, that grew
into one of the world’s largest.
During the 1990s, after a decade flying jet fighters in the
U.S. Marine Corps, Mr.
Sargeant helped expand the
family business.
In November 2003, Mr.
Sargeant landed the first civilian plane in Baghdad just
months after the U.S.-led invasion of Iraq. While there, he
learned the U.S. military
needed high-grade fuel for its
bases, and that Jordan, Iraq’s
next door neighbor, might provide a route.
To bid for U.S. Department
of Defense contracts, Mr.
Sargeant started a company
with Mustafa Abu-Naba’a, a
longtime business partner, and
Mr. Al-Saleh, a childhood
friend of Mr. Abu-Naba’a. Mr.
Al-Saleh was married to the
half-sister of Jordan’s King
Abdullah II, whose approval
would seal the deal.
With Mr. Sargeant’s military background and Mr. AlSaleh’s ties to the king, their
new company soon acquired
Jordan’s permission to transport fuel into Iraq. U.S. military contracts quickly followed.
The operation was lucrative
but dangerous. Tanker trucks
collected fuel from Jordan’s
Aqaba port and drove eight
hours across the country to
meet U.S. military convoys at
the Iraq border. Insurgent
gunfire sometimes turned fuel
trucks into bombs. At least 17
drivers were killed over three
years.
Before its last delivery in
2011, the venture had won $3
billion in Defense Department
contracts and made hundreds
of millions of dollars in profits.
In Florida, Mr. Sargeant became a major Republican
Party donor, hosting fundraisers at his 19,000 square-foot
oceanfront house in Palm
Beach County, Fla. He served
as state finance chairman
when Charlie Crist, a former
fraternity brother at Florida
State University, was elected
governor.
Mr. Al-Saleh collected at
least $27 million in his partnership with Mr. Sargeant,
court records said. In 2006, he
learned Messrs. Sargeant and
Abu-Naba’a had created another firm and had bid for
contracts without him.
Two years later, Mr. AlSaleh filed a lawsuit in Florida
to collect what he alleged
were lost profits. During a
two-week trial in July 2011,
Mr. Al-Saleh told the court he
had been hoodwinked by his
partners, who for a year arranged contracts through the
second firm. When Mr. AlSaleh sought his share of the
proceeds, he testified, he was
pushed out of the operation.
The Florida jury awarded
Mr. Al-Saleh $28.8 million—his
share of the hidden contracts.
Mr. Al-Saleh said in an interview that he “genuinely
thought the judge would make
[Mr. Sargeant] write a check
‘After you go to court or an arbitration center,
there’s nowhere to cash in your paper.’
Dan Hall, outside the London offices of Burford Capital Ltd. He and his investigators followed an
Instagram account, below, to track Harry Sargeant III in fall 2015 to the Claridge’s hotel in London.
ROB STOTHARD FOR THE WALL STREET JOURNAL (2)
DEBT
The movie ‘It,’ which came out this year, frightened many. Some people just read about it online.
within a couple of weeks.”
He didn’t know that two
days before the jury’s decision,
the
ownership
of
Mr.
Sargeant’s Texas refinery was
moved from Florida to Texas,
giving it more protection from
debt collectors.
Mr. Kise said a legal shift in
Florida,
not
subterfuge,
prompted the move. Florida
laws, meanwhile, shielded Mr.
Sargeant’s home and family
bank accounts. Two more
courts affirmed the verdict,
and Mr. Sargeant ran out of
appeals.
After four years, an auction
of guns and watches seized
from Mr. Sargeant’s home had
yielded Mr. Al-Saleh just
$31,400.
Burford of London had
traveled with Mr. Abu-Naba’a
and Mr. Abu-Naba’a’s son, an
aspiring politician who last
year lost a race for mayor of
Santo Domingo, Dominican Republic. A Burford analyst began monitoring the son’s Instagram
account,
which
streamed selfies posed with
celebrities, guns and race cars.
helped finance Mr. Al-Saleh’s
Florida lawsuit in exchange for
a piece of the judgment. Then
it turned its attention to collecting.
Mr. Hall cataloged Mr.
Sargeant’s companies and
studied the path of the fuelcontract money. His investigators
sketched
out
Mr.
Sargeant’s lifestyle and business practices, using creditcard statements obtained by
subpoena.
Mr. Sargeant vacationed in
Aspen, the statements show,
and he traveled overseas with
an entourage that stayed in
$1,000-a-night hotels. Several
times he had spent as much as
$10,000 for a suite of seats at
Miami Dolphins games.
Mr. Sargeant sometimes
Closing in
S.V. DATE/THE PALM BEACH POST/ZUMA PRESS
Continued from Page One
deathly afraid. Their reading
lists have grown longer than
ever, after hits like “Get Out”
and “It” made 2017 a banner
year for the genre.
“I get freaked out really easily,” said James Shoop, a 30year-old mushroom farmer in
Franklinton, La. “But I’m interested in the plot.” Mr. Shoop
has read the plot summaries of
every movie in the “Saw” series—down to the inventive torture
devices
introduced
throughout—but can’t say what
its main villain looks like.
Grace Doble, a 22-year-old
recent college graduate from
Amherst, Mass., avoids reading
scary summaries late at night.
She lists the hobby on her Tinder profile, alongside another
favorite pastime: Watching videos of bird calls, despite not being a birder herself.
Prospective dates used the
information as an opening line,
asking why she read scarymovie plots. “I would say I get
really scared of horror movies,
but I am a really, really curious
person.”
Plot-summary readers say
they’re drawn to the spoilers for
various reasons. Some want to
WARNER BROS./EVERETT COLLECTION
SCARY
Horror-movie screenwriters
find themselves confused by the
plot-summary appeal. “It’s like
trying to explain an earthquake
to someone who’s only seen a
printout from a [seismometer],”
said Marcus Dunstan, a writer
on several installments of the
“Saw” series.
His writing partner, Patrick
Melton, described the Wikipedia
practice as “something my mom
would do.”
Some frightened viewers use
online summaries to ease themselves into the horror. Tiffany
Daniels, a 33-year-old hair stylist in Olympia, Wash., loved the
zombie series “The Walking
Dead” but couldn’t stand the
suspense. “I could feel my chest
tightening. I would be short of
breath,” she said.
Then she discovered a trick.
Since she lives on the West
Coast, she watches a new episode three hours after viewers
in the east. That’s enough time
to log onto the Facebook group
“Walking Dead Spoilers,” where
East Coast viewers have already
outlined the surprises in store.
Then she’s prepped for the hour
of television to come, “rather
than put myself through torture,” she said.
Those brave enough to enter
the theater have other new tools
at their disposal.
About two years ago, An-
Harry Sargeant, center, introduces Charlie Crist to King Abdullah.
Mr. Hall got a tip in fall
2015 that Mr. Sargeant was
asked to clear out a deposit
box at Claridge’s because the
hotel was discontinuing the
service. Mr. Sargeant might
store diamonds there, the tipster said.
When the Instagram feed of
Mr. Abu-Naba’a’s son showed
Mr. Sargeant having lunch at
Claridge’s, a court order freezing as much as $40 million in
U.K. assets had already been
drafted.
After leaving the hotel bar,
Mr. Sargeant’s group drove to
a private club and went inside.
Mr. Hall, who had followed
him by taxi, loitered on a corner across the street. The lawyers arrived just as Mr.
Sargeant emerged from the
club, and they tried to hand
him the court papers.
As the men scuffled, Mr.
Sargeant ducked back into the
club and the bouncers kept
out the lawyers, Mr. Hall said.
Mr. Kise, Mr. Sargeant’s law-
thony Wilson, a supermarket
employee in Christchurch, New
Zealand, launched WheresTheJump.com, a website that tracks
every “jump scare” in horror
movies. Mr. Wilson, who grew
up closing his eyes at the slightest bit of on-screen terror, has
watched nearly 400 horror
movies with his cellphone stopwatch on, to log the precise moment when a music cue or
shocking image hits the screen
to jolt viewers in their seats.
Mr. Wilson logged 20 jumpscares in the 135 minutes of “It,”
furiously writing brief descriptions from the back row of the
theater. “I was stressing out a
bit because I was trying to keep
track of them all,” he said.
In the past year, traffic to the
site has grown about 50% to
200,000 page views a month,
and Mr. Wilson is developing an
app that would cause a moviegoer’s phone to vibrate in warning ahead of each jump scare.
After years of reading horror-movie plot summaries, Mr.
Shoop, the mushroom farmer, is
considering “taking the plunge”
and watching two movies he’s
heard are especially good: “It
Follows” and “The Babadook.”
He’s not expecting too many
surprises—he’s read the plot
summaries of both. “I just want
to see how it all plays out on
screen,” he said.
yer, said Mr. Sargeant returned to the club when he
saw strangers rushing toward
him.
Later, Mr. Hall and the lawyers sat in Claridge’s marbled
lobby, waiting to see if Mr.
Sargeant would return. They
were out of luck.
Confident that Mr. Sargeant
was now in the net of a British
court after the freeze order
was served at Claridge’s, the
Farnborough airport and to
Mr. Sargeant’s lawyers, Mr.
Hall went home.
The next day he woke up
and looked at his phone to
read messages. His stomach
sank. The Claridge’s box was
empty.
The private plane that
brought Mr. Sargeant to London also was gone. The airport
staff had received the court
order late and it went unnoticed. At dawn, the plane was
cleared for takeoff.
It was, Mr. Hall said, “a bit
of a body blow.”
Mr. Sargeant’s private jet
was headed to Geneva, and Mr.
Hall started calling lawyers
and investigators in the Swiss
city.
At Burford’s office in London’s financial district, an analyst worked through a list of
five-star hotels, calling to ask
if the Sargeant party had arrived. The Mandarin Oriental
said it had. Mr. Hall assembled
a surveillance team there.
Mr. Hall spent the day on
the phone, trying without luck
to get the plane grounded in
Geneva for breaking the U.K.
judge’s freeze order. A Swiss
asset-recovery lawyer said
there wasn’t a clear enough
connection
between
Mr.
Sargeant and the plane’s legal
owner, a Delaware limited liability company.
For a couple of days, Mr.
Sargeant visited commodity
trading firms, shadowed by
Mr. Hall’s investigators. Then
he flew to the U.S.
Mr. Hall estimated that Mr.
Sargeant had spent as much as
$10 million fighting Mr. AlSaleh’s claim. Mr. Kise said the
legal bills were a fraction of
that.
In October 2016, Mr.
Sargeant and Mr. Al-Saleh finally met in Miami for a courtordered mediation session.
Flanked by lawyers and a Burford representative, the two
men—stationed in separate
rooms—hammered out a settlement: Mr. Al-Saleh would
receive more than $30 million,
and he would drop all litigation.
Mr. Hall said Mr. Sargeant
probably wanted to clear the
claim that hung over him as
he sought new business ventures. Mr. Sargeant’s current
business associates were also
probably tired of getting subpoenas, Mr. Hall said.
Mr. Kise said he believed
that Burford agreed to the settlement because the firm
wanted to finally book its
share of profit. Burford said it
netted $12 million.
Mr. Al-Saleh called the settlement a moral victory. He
now splits his time between
Palm Beach, London and Paris.
His marriage to the king of
Jordan’s half sister broke
down, he said.
“The only satisfying thing
about this entire episode,” Mr.
Al-Saleh said, “is I beat them
against all odds.”
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | A10A
NY
* * * * * *
GREATER NEW YORK
Win flips control of
state’s highest office
to Democrats after
eight years of GOP rule
BY KATE KING
New Jersey voters Tuesday
elected Democrat Phil Murphy
as their next governor, ending
two terms of Republican control and setting the stage for
shifts in the state’s approach to
spending, collective bargaining
and social issues.
The Associated Press declared Mr. Murphy, a former
Wall Street executive who has
never served in public office,
the winner in the race to succeed Republican Gov. Chris
Christie. Lt. Gov. Kim Guadagno, the GOP candidate, con-
ceded Tuesday night.
Mr. Murphy’s win signals a
rebuke of Mr. Christie, who has
become unpopular in New Jersey in recent years and was
prevented by term limits from
running
In his victory speech, Mr.
Murphy pledged to assemble an
administration that will help
him implement his progressive
agenda. “It won’t be easy and it
certainly won’t be overnight
but let there be no doubt—
starting here, starting now and
starting with us—New Jersey is
coming back,” he said.
Ocean Township resident Bill
Rosenblatt said he didn’t believe the last eight years of Republican leadership have benefited the state. “I don’t think
the Republican concept for the
economy—that we cut taxes
and hope for some economic
stimulus—has worked,” said
Mr. Rosenblatt, 69 years old.
With Democrats expected to
maintain control of both chambers of the state legislature, Mr.
Murphy is well-positioned to
undo many aspects of Mr.
Christie’s legacy, on issues from
gun control to state spending.
He defeated Ms. Guadagno,
who has served in Mr. Christie’s
administration since 2010. Ms.
Guadagno, a former sheriff, ran
on a promise to lower property
taxes but struggled to distance
her campaign from Mr. Christie.
Ms. Guadagno told her supporters: “We may have lost the
fight, but we will continue the
war in the long run.”
Mr. Murphy, 60 years old,
will be the second former Goldman Sachs executive since
2006 to be governor of the
state of nearly 9 million. Jon
Corzine, who lost to Mr. Christie in 2009 after serving one
term, had also worked at the
Wall Street firm.
Mr. Murphy will now have to
try to spark growth in a state
where the economy has been
languishing. New Jersey’s real
gross domestic product, a measure of economic strength, saw
a compound annual growth rate
of 0.2% between 2006 and 2016
compared with 1.1% nationwide,
according to the U.S. Department of Commerce.
Public-employee union officials backed Mr. Murphy, who
pledged to fully fund the state’s
payments toward its publicpension liability—which is 41%
unfunded—and negotiate any
changes to state-employee benefits through the collective-bargaining process. The unions
battled Mr. Christie throughout
LUCAS JACKSON/REUTERS
Phil Murphy Elected N.J. Governor
‘New Jersey is coming back,’ Phil Murphy said in his victory speech.
his time in office because he
pushed legislative changes to
the state pension system.
Mr. Murphy also has said he
would increase state funding in
several other areas where Mr.
Christie held back, including
public schools, higher educa-
tion and transportation. He is
expected to take a more progressive approach to economic
and social issues, including
raising the state’s minimum
wage to $15 an hour, legalizing
and taxing marijuana and increasing taxes on millionaires.
De Blasio Cruises
To a Second Term
As New York Mayor
ALBA VIGARAY/EPA/SHUTTERSTOCK
BY MARA GAY
New York City poll workers helped a voter on Tuesday. Residents cast their ballots for mayor, council members and other offices.
Convention Measure Handily Defeated
BY MIKE VILENSKY
AND MELANIE GRAYCE WEST
New York voters Tuesday rejected a ballot measure on a
constitutional convention, a relief to top New York officials
and labor leaders who had campaigned against the idea.
With more than half of precincts reporting, over 80% of
voters had cast ballots against
the convention, where specially
elected delegates could propose
amendments to the constitution.
“Our coalition galvanized
voters across a broad ideological spectrum to rise up and oppose a corrupt process that
would enrich Albany’s political
class while leaving the rest of us
behind,” said the group New
Yorkers Against Corruption, a
“no” coalition of labor unions
and advocacy groups.
A “yes” coalition lamented
the results. “The defeat of the
Constitutional Convention is a
triumph for all of the enemies of
reform in Albany,” the group,
NY People’s Convention, said.
A coalition of grass-roots activists on both sides of the aisle
had framed the convention as
an opportunity to bypass the
bureaucracy and gamesmanship
of the state Legislature.
Top officials including Gov.
Andrew Cuomo, New York City
Mayor Bill de Blasio and union
leaders had said the convention
was vulnerable to right-wing
special interests.
In Manhattan, some voters
said they were interested in
the idea but concerned about
the risks.
“Better safe than sorry,” said
Britt Greifeld, a 27-year-old
writer living on the Upper West
Side, who said she voted against
the convention.
A second ballot measure that
would allow judges to strip
elected officials convicted of
corruption crimes of their pensions appeared poised to pass
Tuesday night.
With more than half of precincts reporting, the measure
had more than 70% support, an
indication that voters were frustrated with decades of state
scandals.
Assemblyman Brian Kolb, a
Republican, said the measure
should have passed long ago.
“Scandals have finally motivated
people
to
make
changes,” he said.
In the New York City suburbs, Democrats appeared
poised to pick up two county-executive races.
In Westchester County, GOP
incumbent Rob Astorino, who
was seeking a third term, conceded to state Sen. George Latimer, a Democrat.
Nassau County legislator
Laura Curran, a Democrat, was
leading state legislator Jack
Martins, a Republican, for Nassau County executive.
Both are swing districts
seen as potential national bellwethers.
In city races, Democrats were
poised to maintain a vast majority on the New York City Council
and maintain all citywide positions. In a handful of neighborhoods, Republicans had hoped
to pick up City Council seats.
—Zolan Kanno-Youngs
contributed to this article.
New York City Mayor Bill de
Blasio was re-elected by a wide
margin on Tuesday, easily defeating Republican Nicole Malliotakis to become the first
Democratic mayor to win two
terms in the city since the
early 1980s.
“Well, you wanted four
more years, you got four more
years,” Mr. de Blasio said to
cheers at his election party at
the Brooklyn Museum. “You
ain’t seen nothing yet.”
Mr. de Blasio was winning
with more than 60% of the
vote to state Assemblywoman
Malliotakis’s 25% a little before
10:30 p.m., with 88% of the
vote counted, according to the
city’s Board of Elections.
“We may not have won this
race but we have made our
voices heard and we will continue to fight for what we believe in,” Ms. Malliotakis said,
conceding just before 10 p.m.
Mr. de Blasio, who won this
year promising to fight President Donald Trump’s agenda,
said his victory “sends a message to the White House.”
“If you turn against the values of your hometown, your
hometown will fight back,” he
said.
The election capped months
of sluggish campaigning that
elicited little interest among
voters, and offered Mr. de Blasio scant competition in a city
where Democrats outnumber
Republicans by nearly 7 to 1.
Many voters who cast ballots for Mr. de Blasio said they
felt the city is doing well under
his leadership. Few, however,
expressed excitement about
the mayor, or about what a
second term might bring.
Mr. de Blasio “is not perfect, but I feel like he was the
best choice presented,” said
Britt Greifeld, a 27-year-old
writer who voted for him.
The mayor will be first
Democrat to serve at least two
terms since Ed Koch. He will
face significant challenges. The
largest and most intractable is
likely to be housing, as he
plows forward on a promise to
build or preserve hundreds of
thousands of affordable units
in a city with some 60,000
people living in shelters, and
Mr. de Blasio ‘is not
perfect, but I feel like
he was the best
choice presented.’
thousands more middle-class
families struggling to find
homes.
Pressure from liberals angry
Mr. de Blasio hasn’t gone far
enough to provide oversight
and accountability of the New
York Police Department is
likely to continue.
The mayor’s re-election,
however, is likely to serve as a
vindication of the liberal vision
for New York City he ran on
four years ago, when he promised to attack growing income
inequality, build affordable
housing and make policing
fairer for minorities.
BY PETER GRANT
The Wall Street venture
that purchased Stuyvesant
Town and Peter Cooper Village
two years ago for $5.3 billion
wants to turn the roofs of the
sprawling apartment complex
into Manhattan’s largest solar
power producer.
Blackstone Group and Ivanhoé Cambridge are planning to
spend more than $10 million to
install close to 10,000 solar
panels on the roofs of 56 buildings in the complex on the East
Side. They will provide enough
power for about 1,000 apartments annually, close to 9% of
the total units in the 80-acre
complex.
Blackstone executives say
the project will triple Manhattan’s capacity to generate solar power. “You have 56 separate buildings with flat roofs,”
said Nadeem Meghji, Blackstone’s head of real estate in
the Americas. “That enabled
us to roll out the largest private multifamily solar installation in the U.S.”
Blackstone, one of the
world’s largest private-equity
firms with over $385 billion of
assets under management, has
been aggressive in efforts to
find energy cost savings in its
global portfolio of commercial
real estate, infrastructure,
hedge funds and other investments. The company says it
has been able to generate
about $100 million in value
through these efforts, which
can be as pedestrian as installing more efficient toilet flappers in all the bathrooms of its
hotel empire.
The company also recognizes the public-relations
value of installing solar power
in the heart of New York on a
complex that has been a lightning rod for concerns about
affordable housing and other
community issues. “When we
made our original investment, we made a promise to
be partners with the city and
community,” Mr. Meghji said.
“This is just an extension of
that promise.”
New York has been a leader
in building energy efficiency
in the U.S., according to Russell Unger, executive director
of the Urban Green Council.
He said that between 2010 and
2015, existing buildings reduced energy use 10%, with a
lot of the improvement coming from improvements to
power plants and buildings
converting from oil to natural
gas.
MICHAEL NAGLE/BLOOMBERG NEWS
Stuyvesant Town Makes Big Push Into Solar
Solar panels will be installed on 56 Stuyvesant Town buildings.
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A10B | Wednesday, November 8, 2017
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* *****
THE WALL STREET JOURNAL.
GREATER NEW YORK
METRO MONEY | By Anne Kadet
Meditation!
Meditation!
Meditation! As
everyone’s
heard, the
practice offers
benefits ranging from improved focus to full-blown enlightenment. And thanks to
the hype, it’s now a $1.1 billion
industry, according to IBISWorld, growing 10% a year.
There’s one hitch: Meditation doesn’t scale. For thousands of years, practices were
transmitted from teacher to
student in an unbroken chain
of oral instruction, often led
by eccentrics who happily
taught on a volunteer basis.
Not a great business model.
Until now.
Last week, I tried finding
inner peace at Inscape, a
Manhattan studio founded by
a fashion retail guru. His innovation? No teachers.
At Inscape’s West 21st
Street center, which opened
last November, guests enjoy
breathing, mantra and mindfulness exercises with “Skye,”
a disembodied voice that
could be Siri or Alexa’s
blissed-out big sister. Her tone
is encouraging but firm. Skye
really wants you to relax.
Inscape founder Khajak
Keledjian says the recorded
sessions keep the focus on
the meditator’s inner experience.
“If anything is happening,
it’s happening because of
what’s happening in you,”
says the Tribeca-based entrepreneur, who sold his upscale
fashion chain Intermix in
2012 for $130 million.
The strategy is also scalable. Just as he did with Intermix, Mr. Keledjian can
open an Inscape studio anywhere and maintain a uniform experience.
Further broadening the appeal, the meditations lack reference to any specific religion
or lineage. It’s pure technique.
“You have to remember,
the consumer is very skeptical,” says Mr. Keledjian.
His business partner is
Lew Frankfort, the executive
chairman of Coach Inc. who,
as its former chief executive,
grew the accessories chain to
$5 billion in annual sales.
Mr. Frankfort advises on
the business side of Inscape.
He’s also an investor, adding
the company to his portfolio
of startups, which includes
co-working giant WeWork
and fitness studio chain Flywheel.
The opportunity for
growth in the meditation
PETER RYAN FOR THE WALL STREET JOURNAL
A Fashion Guru
Puts a High-Tech
Spin on Meditating
arena is “boundless,” says Mr.
Frankfort. Even his 8-year-old
granddaughter uses the Inscape meditation app to doze
off at night.
When I stopped by the Inscape studio for a recent
post-workday meditation, an
attendant offered me a drink
of “calm” or “energizing” water. Soothing synth-pad tones
played in the background.
At the entrance to the
Dome, Inscape’s yurt-like studio for sitting meditation, a
facilitator dabbed guests with
scented oil, noting its availability at the gift shop. I
checked after class: It costs
$85 an ounce.
The meditations are basic
breathing, mantra and mindfulness exercises, complete
with glowing lights and soft
music.
I found myself missing the
sometimes sardonic, sometimes hilarious resident
teacher at my Buddhist center
in Brooklyn who cheerfully
exhorts us to lead our inherently existent selves to the
slaughter. And I think half the
fun of a meditation class is
asking the instructor tricky
questions about the nature of
reality and what to do when
your foot falls asleep.
At most Manhattan studios, you hear buses roaring
and sirens wailing. At Inscape, thanks to soundproof
rooms, there’s little distraction. It’s easier to get into the
zone.
And it should be. The sessions, starting at $22 for 35
minutes, are expensive, especially given the free options
all over the city.
Mr. Keledjian says prices
reflect costs. Rent for the
5,000-square-foot space in
the Flatiron district is
$500,000 a year. The interior,
meanwhile, is an extravaganza of linen and bamboo,
chic enough to have been featured in Architectural Digest.
Marc Einsele, a 54-year-old
editor who lives on the Upper
West Side, is an Inscape regular. He once tried meditating
with a guru, “but the scene
felt really alien to me,” he
says. He chose Inscape for the
convenient location near his
office, and visits often. “I like
the music,” he says. “It’s
quiet. It smells nice.”
anne.kadet@wsj.com
Zubin Mehta Discusses Wagner in Israel and Palestinian Musicians
BY CHARLES PASSY
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
When Zubin Mehta finds
an orchestra to his liking, he
sticks with it.
The conductor is known
to New Yorkers for his 13year tenure (1978-1991) as
music director of the New
York Philharmonic Orchestra,
a stint that stands as the
longest in the ensemble’s
175-year history.
But the 81-year-old
Mr. Mehta, a native of Mumbai, has a much longer association with the Israel Philharmonic Orchestra, where
he has served in various senior roles since 1969, including his current position as
music director for life.
Despite that “for life” title, Mr. Mehta, has announced plans to step down
from the Israel Philharmonic
in 2019, which will mark his
50th year of involvement
with the orchestra.
Meanwhile, he is conducting the Israel Philharmonic in
a North American tour that
culminates with concerts this
week at Carnegie Hall in Manhattan through Thursday.
people. Do you agree?
It’s because as an orchestra and as citizens of Israel,
they have gone through a lot
of crises. The Six Day War.
The Yom Kippur War. Bombing from Gaza. They play under extreme conditions at
times.
Zubin Mehta conducted the Israel Philharmonic Orchestra at Carnegie Hall in Manhattan last month.
We sat down with
Mr. Mehta following a rehearsal in New York City.
The interview has been edited and excerpted.
What enables you to stay with
an orchestra for so long?
It’s the daily breathing
and communicating together
that goes on. Tours are also
very healthy for everybody.
We play in different conditions acoustically. We play
for different audiences.
The Israel Philharmonic is more
than an orchestra to a lot of
You have talked about the idea
of one day having a Palestinian
member of the orchestra. Do
you think that is possible?
We audition musicians
behind curtains. So one day
I’m hoping and praying the
curtain will open and there
will be a young Palestinian
boy or girl standing there.
You also have discussed your
desire to play Wagner, the operatic composer known as a
notorious anti-Semite, in Israel.
Do you think that will happen?
At the moment, we are
not even talking about it.
There are still people living
in Israel with numbers (tattoos for identifying Nazi
concentration-camp prisoners) on their arms. Whether
they are music lovers or not,
it doesn’t matter. Emotion-
ally, they don’t want to hear
this music and be taken back
to the times of terror. In the
concentration camps, they
heard this music.
What do you miss about New
York City?
The orchestra. I love
them. I engaged more than
45 musicians during my 13year tenure. And some of
them are still there.
There has been news of late
about plans to renovate David
Geffen Hall (formerly Avery
Fisher Hall), the Lincoln Center
home of the New York Philharmonic, and address some issues, including the acoustics.
What do you think about the
space?
I was never comfortable.
The hall is just too long. It’s
just too big. I had no contact
with the people sitting in the
balcony. We made music on
stage. What the people
heard, I can’t tell you that.
What’s your pre-concert ritual?
I must sleep at least an
hour. It gets the metabolism
to start working again.
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POLITICS
MENENDEZ TRIAL
Cuomo Fundraisers
Set for California
Jury Holds First Full
Day of Deliberations
Some of the most powerful
people in the entertainment industry are planning to boost
New York Gov. Andrew Cuomo’s
2018 gubernatorial campaign.
Mr. Cuomo, a Democrat running for a third term next year,
is planning a one-day fundraising swing through San Francisco and Beverly Hills next
week, according to invitations
for his fundraisers there. Walt
Disney Co. Chief Executive Robert Iger, CBS Chief Executive
Leslie Moonves and Universal
Filmed Entertainment Group
Chairman Jeff Shell are listed
as invitees. Representatives of
those companies declined to
comment.
Tickets for the Beverly Hills
Event, at Mr. Shell’s home, are
going for between $5,000 and
$50,000, according to the invitation. Mr. Cuomo is set hours
earlier to appear at a San Francisco law firm to meet with
supporters who will pay between $1,000 and $10,000
apiece, according to a separate
invitation.
The governor already has a
formidable war chest of $25
million in campaign cash. He
has been raising his profile recently with trips to Puerto Rico
and Israel, fueling speculation
about his ambitions to run in
the presidential election of
2020.
—Mike Vilensky
Jurors in the bribery trial of
Sen. Bob Menendez concluded
their first full day of deliberations without a verdict.
A juror asked the judge Tuesday to read back part of a closing argument by the New Jersey
Democrat’s lawyer that dealt
with the definition of a senator.
The judge declined, saying only
testimony can be read back.
Mr. Menendez is charged
with taking bribes from Florida
eye doctor Salomon Melgen in
exchange for political influence.
They have denied wrongdoing.
—Associated Press
CRIME
Three Victims Linked
To MS-13 Violence
Authorities believe the remains of three young Hispanic
men found in recent weeks on
Long Island are likely the latest
victims of MS-13 gang violence.
The FBI on Tuesday released
the names of 16-year-old Javier
Castillo and 19-year-old Kerin
Pineda. Both were missing more
than a year. Their remains were
discovered a few days after authorities found the corpse of another missing teen, 16-year-old
Angel Soler.
Their discovery makes 25 suspected MS-13 victims on Long
Island in the past two years.
—Associated Press
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THE WALL STREET JOURNAL.
CHRIS REED
LIFE&ARTS
Wednesday, November 8, 2017 | A11
WORK & FAMILY | By Sue Shellenbarger
New Meeting Rules: Five Minutes, Max
Tired of 30-minute slogs, some companies are devising strict guidelines to speed up office discussions
IN THE TIME you spend reading
this story, your next meeting could
be over.
Annoyed by a calendar clogged
with hourlong meetings, Aaron
Shapiro, chief executive of Huge
Inc., a 1,500-employee New York
digital agency, has started holding
five-minute meetings. Rather than
booking a conference room for 30
minutes, he makes minor decisions
in five-minute huddles with colleagues. When employees ask to
meet with him, he conducts deskside “drive-bys” with each one.
He has no qualms about cutting
people short when they ramble by
being what he calls “politely
blunt.”
“It’s often shocking when people first come to Huge,” he says.
Jason Schlossberg, who loves to
talk, was making a point in a meeting shortly after joining Huge as
managing director last April when
Mr. Shapiro cut in and told him he
understood, and Mr. Schlossberg
should move on. “I had four more
anecdotes to prove that point!” Mr.
Schlossberg says he thought at the
time. Now, he says, “I choose my
words more carefully.”
Mr. Shapiro stands at the forefront of a war on meeting bloat.
Weary of long, inefficient meetings, some employers are squeezing minor decision-making sessions into a few minutes. Agile-
management techniques embraced
years ago by tech companies are
bringing brief daily check-in meetings to marketing, e-commerce,
advertising and other fields.
The move is shattering some
workplace rites and routines:
Long-winded monologues and
PowerPoints are out. There’s no
time for small talk, and less tolerance for 30- or 60-minute meetings when five to 15 minutes will
do. Participants must learn to distill their ideas and requests to the
conference-room equivalent of an
elevator pitch.
Employees at Scrum50 start
brief daily meetings right on time
and finish some in as little as four
to six minutes, says Chris Parker,
managing partner of the South
Norwalk, Conn., digital marketing
agency. “If you’re five or six minutes late, you’ve missed it.”
Creative professionals used to
making polished presentations
must briefly explain mere seeds of
ideas or works-in-progress instead,
says Scrum50’s executive creative
director, Jennifer Miller. “You sort
of need to check your ego at the
door,” she says.
Jamie Abbruscato was cut short
during a meeting shortly after
joining LaneTerralever, a Phoenix
digital agency, in 2015. “It feels
like having the wind knocked out
of you,” says Mr. Abbruscato, an
account director. The agency has
25-employee teams meet every
morning for rapid-fire updates on
dozens of projects, says David Foster, chief operating officer.
People typically speak for 15 to
30 seconds at a time—or risk being cut off by meeting leaders.
Now, Mr. Abbruscato spends five
minutes before each meeting paring his customary three- to fiveminute updates to 30 seconds,
max. He carries notes with him to
prod his memory, he says.
One executive has
started playing walk-off
music for colleagues
who take too long.
Many meeting leaders employ
the three-bounce rule, says Jack
Skeels, chief executive of AgencyAgile, Los Angeles, a managementtraining firm. After three backand-forth exchanges between two
participants, the topic is deferred
to a separate meeting. Others impose a “so-that” imperative: Any
update must include a description
of the impact on others, as in, “I
completed my work on that project so that Angela can take it to
the client today,” Mr. Skeels says.
When project manager Alexandra Roth was drawn into a long exchange with a co-worker during a
recent meeting at her employer,
Fingerpaint Marketing, Jennifer
McKenna hit play on music she has
queued on her laptop: Nappy
Roots’s “Good Day,” says Ms.
McKenna, head of operations at
the Saratoga Springs, N.Y., marketing agency. She likens it to music
at the Oscars signaling that it’s
time for winners to stop talking.
Ms. Roth adds, “I was like, ‘OK,
yeah, we’re done with this conversation.’ I was wasting seven other
people’s time.”
Lindsey West, chief executive of
Track1099, a Redwood City, Calif.,
maker of tax-filing software, says
there’s no time during her fiveminute video meetings with employees to worry about her image
or appearance. “That’s one of the
beauties of five-minute meetings:
They’re so fast nobody is really assessing how your hair looks,” Ms.
West says.
Asking someone to coffee can
seem just too long. Chief executive
Charlie Kim sometimes holds fiveminute sessions he jokingly calls
“lightning meetings” among employees at 121Nexus, a Boston software developer: A lightning meeting
“has energy, it has action, people
are shocked by it and everything
about it truly moves,” Mr. Kim says.
When vendors ask to set 30
minutes for coffee, he gives them
10. “Thirty minutes is a lot. What
are we going to achieve?” he says.
He has little use for the “banter
for the first five minutes: How are
you doing? How are the kids?” he
says. “To respect the other person’s time, maybe you need to get
right to it,” he says. “We all drink
way too much coffee already.”
If a meeting participant at Netamorphosis, a New York e-commerce company, drones on too
long, chief executive Lyde Spann
holds up a hand and says, “Nope,
we’re not going to talk about that
right now.” She later huddles with
employees she silences to smooth
over “what might be considered
rude behavior,” Ms. Spann says.
“An adverse effect of this kind of
efficiency,” she says, is that “meetings used to be a time to connect.
You’d ask people how their weekend was. You build relationships.
We run the risk of missing that.”
She compensates by scheduling
time off on Fridays for socializing,
and check-ins every 30 days for
employees to talk about how
they’re feeling, “take a deep
breath and get some reinforcement,” Ms. Spann says.
Sue Shellenbarger answers a reader
question on office life ..................... A12
ART
BY KELLY CROW
LOUVRE ABU DHABI opens to
the public Saturday, capping a decade-long effort to attract people
to the region with a combination
of culture and glitz.
After five years of delays, museum officials said they are ready
for dignitaries like French President Emmanuel Macron as well as
the public to descend on the
United Arab Emirates to see if the
region’s first encyclopedic museum
was worth the wait.
Over the weekend, thousands of
visitors are expected to attend a
music festival at the museum, with
light shows and performances by
French rock star Matthieu Chedid,
who goes by —M—, and Lebanese
musician Ibrahim Maalouf.
The 93,000-square-foot museum, designed by French architect Jean Nouvel, unfolds under a
glittering dome. From a distance,
it resembles a flying saucer nearly
as long as a pair of football fields
perched atop a chalk-colored jumble of low buildings floating in the
Persian Gulf. Closer up, it becomes
clear that Mr. Nouvel has perforated his metal roof with thousands of cutouts that sprinkle light
onto 55 linked buildings beneath.
The effect is that of a sun-dappled
city, surrounded by sea.
Mr. Nouvel said he wanted to
conjure the atmosphere of Venice,
with its canals and narrow passageways. Several galleries have
glass ceilings so people can stare at
the dome—an orienting device the
architect said was intentional. “My
white cubes are the opposite of a
typical museum, which are meant
to feel blank, like you are nowhere,” he said. “I want you to feel
always like you are somewhere.”
Museum director Manuel Rabaté
said curators reimagined how a
comprehensive museum is orgaPlease see LOUVRE page A13
MOHAMED SOMJI/LOUVRE ABU DHABI
THE LOUVRE’S
GLITZY COUSIN
A roof with cutouts lets light into a plaza at the Jean Nouvel-designed Louvre Abu Dhabi in the United Arab Emirates.
THE WALL STREET JOURNAL.
A12 | Wednesday, November 8, 2017
EMILY BERL FOR THE WALL STREET JOURNAL (5)
LIFE & ARTS
Corey Brewer, far
left and above,
with his son,
Sebastian, drives a
Tesla Model X
100D. Tesla
interiors are
known for giant
touch screens like
the one below.
MY RIDE | By A.J. Baime
One Laker’s Antidote for
L.A. Traffic: His Tesla
Corey Brewer, 31, a 6-foot-9 forward with the Los Angeles Lakers
in his 11th NBA season, on his 2017
Tesla Model X 100D, as told to A.J.
Baime.
I live in the Valley, and my team
practices in El Segundo. I have
played for a lot of basketball teams
and lived in a lot of cities, and I
will tell you, there is no traffic like
the traffic in L.A. It can take 45
minutes to go 4 miles on I-405. I
decided to buy a Tesla because it
is an electric car, so I could go in
the HOV lane when I am by myself,
and because it has an autopilot
function, so the car is supposed to
basically drive itself.
The process of buying the car
was unlike anything I have experienced. You go online and pick out
what you
want—the color,
the color of the
rims, how many
seats you want.
[The car can
come with five,
six or seven.] A
few weeks later,
the car is ready.
I spent about
$115,000, and I
got the car
home in September. The rear
doors are falcon wing doors. I put
my son Sebastian’s car seat in the
back and he freaked out when he
saw these doors open. He thought
the car was the Batmobile.
There is no gas tank. Each night,
I plug the car into a wall outlet. At
the practice facility, there is a
charging station that works much
faster. [Tesla claims a range of 295
miles when fully charged.]
The first time I turned on the
autopilot, I was thinking, is this really going to work? It does! The
car has cameras and radar so it
will stay in its lane automatically.
If the car in front slows down or
stops, my car does the same. You
have to pay attention, but you can
enjoy the ride.
Also, the Model X is really comfortable for tall people.
My first car was a 1994 Eagle
Talon. I was 16 years old, working
at a Hardee’s fast-food place in
Tennessee making, I think, $5.15 an
hour. I saved up and bought the
car for $1,000. Every now and
then, I pass a Carl’s Jr. in my
Tesla. (In California, Hardee’s is
called Carl’s Jr.)
I’ll cruise by—the car doing most
of the driving by itself—and I think,
man, I have come a long way.
Contact A.J. Baime at
Facebook.com/ajbaime.
WORK & FAMILY MAIL | By Sue Shellenbarger
ADVERTISEMENT
Showroom
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AVIATION
AVIATION
IS YOUR FAILURE
THE RESPONSIBILITY
OF YOUR BOSS?
Q:
I was fascinated
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how to tell when you’re on
thin ice at work. I know it
can be difficult to give
meaningful feedback to a
subordinate, but shouldn’t
the boss bear more responsibility here? Why does so
much of the burden fall on
the employee to figure out
when he or she is in trouble?
—D.G.
SHOWROOM
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VOLVO
A:
Many managers
give employees feedback in annual performance
reviews tied to decisions
about compensation. That
usually isn’t often enough to
help subordinates change
course before they’re in
trouble.
The reviews are often
poorly done. A manager may
sugarcoat criticism or use
vague language to avoid
sparking conflict, hurting feelings or being seen as a jerk.
Some managers are afraid
that if they deliver bad news,
the employee will complain
to human resources and
cause a big flap. Others are
slow to give feedback because they believe they can
fix the problem by providing
coaching or serving as a role
model. Also, many managers
don’t know how to deliver
criticism in a considerate
way, and think their only option is to be brusque or rude.
More companies are finding ways to give feedback
quarterly or monthly. Some
use goal-setting programs or
apps that allow ratings of individual employees. Others
set up systems that allow
employees to ask for feedback anytime on how they
stack up in such areas as
leadership ability. The trend
toward giving more frequent
feedback is likely to intensify
amid mounting time pressure, flattening workplace hierarchies and growth in
team-based management of
projects.
Got a question about
office etiquette?
Write Sue Shellenbarger at
sue.shellenbarger@wsj.com.
LEASE
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THE MART
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MICHAEL MARSICANO
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | A13
LIFE & ARTS
MUSIC REVIEW | By Jim Fusilli
Alt-Metal Goes Orchestral
On its new album, Evanescence covers many of its own songs with a distinctly symphonic twist
On the new disc, Ms. Lee dominates, delivering her performance
with maximum melodrama but
never crossing into kitsch. For the
most part, the new approach works
well. Whereas the original version
of “Never Go Back” opened with
slashing guitar riffs and a pounding
back beat, here strings and a piano
welcome Ms. Lee, who enters with
muted authority. Electronic percussion gives the music yet another
new trait, and a new song, “Imperfection,” pumps on a hip-hop beat.
“Lithium” has a lightness in its underpinning that
balances Ms.
Lee’s vocal, while
her re-reading of
“My Immortal” is
exquisite as soaring strings mirror
the sadness in the
grand ballad’s
melody. “Lost in
Paradise” is stirring pop opera in
which Ms. Lee’s
vocal is complemented by Mr.
Campbell’s best
orchestration on
the he disc: This reading is worthy
of comparison to a show-stopping
ballad in a Disney animated film.
The new versions of “Imaginary”
and “Your Star” miss the metallic
edge of the originals, but the arrangements aren’t without merit or
intrigue.
At the Orpheum Theatre here,
cries of “Amy, we love you” rang
out often between numbers, and
the beloved Ms. Lee responded
with a rich, measured yet emotional performance, completed
with breast-beating and fist pumping that weren’t overwrought in
context. In a black ball gown, she
moved between a piano, which she
played deftly, and a microphone at
center stage surrounded by a
pickup orchestra under the baton
of Susie Seiter. Though Evanescence drummer Will Hunt gave the
music a muscular drive when required, the contributions of the
other members of the band were
so subtle as to be all-but-unheard.
Three guitars were lost in the
whirlwind as was a theremin.
The majesty of Ms. Lee accompanied by Mr. Campbell’s arrangements was undeniable. In “Secret
Door,” Ms. Lee sang to the clatter
of electronic percussion; soon, the
warm call of a cello floated around
her voice. “My Heart Is Broken”
profited from Mr. Campbell’s surge
of brass that suited Ms. Lee’s spiraling vocal, as did “Bring Me to
Life,” to which Mr. Hunt delivered
additional power.
For an encore, Ms. Lee returned
to the piano for readings of “Speak
to Me,” which she contributed as a
solo artist earlier this year to the
film “Voice From the Stone,” and
two lovely Evanescence ballads
that don’t appear on “Synthesis”:
“Good Enough” and “Swimming
Home,” the latter performed without the orchestra. Thus the night
concluded with a gentler touch
and a suggestion that Ms. Lee enjoys keeping her musical options
open, as well she should.
Evanescence performing in October, above, and Amy Lee, below. The band’s
new album, ‘Synthesis,’ is out on Friday.
FROM TOP: SCOTT UCHIDA; GETTY IMAGES
Boston
EVANESCENCE has long had dual
personalities, mixing alt-metal and
symphonic rock on its three studio
albums. On its fourth, “Synthesis”
(BMG), out on Friday, it changes
the template: Though Amy Lee’s
powerfully theatrical mezzo-soprano and neo-gothic rock compositions remain its dominant features, Evanescence discards metal
in favor of orchestral grandeur.
Ms. Lee and her band are amid an
ambitious tour of the U.S. and
Canada, performing with local orchestras at each stop. It played
here on Sunday night.
Eleven of 16 tracks on “Synthesis” are new versions of previously
recorded Evanescence songs. By
phone last week, Ms. Lee acknowledged what she called “the awesome power of the guitars and
drums” in the band’s previous
work, but said that she wanted to
emphasize its orchestral leanings
by replacing the beefy metallic
roar with new symphonic arrangements by David Campbell.
“The big dream was to rebuild
the songs from the ground up,”
she said. Mr. Campbell is a peerless rock-and-pop arranger who
has been behind countless hits beginning with Carole King’s 1972
“Rhymes & Reasons” and including
“Morning Phase,” his son Beck’s
2014 Grammy-winning album. He
has worked on every Evanescence
album, but never with such latitude as on “Synthesis.”
The shift in style isn’t without its
risks. Evanescence developed a loyal
fan base beginning with its 2003 debut disc, “Fallen,” that garnered five
Grammy nominations including Album of the Year—it won for Best
New Artist and Best Hard Rock Performance—and
that base enjoys
the band’s Toolmeets-Andrew
Lloyd Webber
attack. But
those fans may
have guessed a
change was
coming. Ms. Lee
has been taking
on a variety of
outside projects
without a hint
of metal, including participating in tributes
to the music of Johnny Cash and the
Muppets; writing and recording,
with cellist Dave Eggar, the score for
the 2014 film “War Story”; and issuing “Recover, Vol 1.,” an EP of songs
by Chris Isaak, Portishead, U2 and
the folky side of Led Zeppelin. These
assignments allow her the kind of
artistic wanderlust Evanescence
doesn’t; and while her voice is too
bold and dramatic to be fully tamed,
they reveal a pleasing versatility,
proving Ms. Lee doesn’t need theatricality to communicate effectively.
Mr. Fusilli is the Journal’s rock
and pop music critic. Email him at
jfusilli@wsj.com and follow him on
Twitter @wsjrock.
LOUVRE
Continued from page A11
nized. Traditional institutions like the Louvre in Paris organize their art by civilization
or geography, with pieces from 16th-century
Europe rarely displayed alongside 16th-century works created elsewhere. In Abu Dhabi,
Mr. Rabaté said the 600 pieces—roughly
half owned by the museum, half loaned from
17 French museums—will be arranged
chronologically, with curators teasing out
shared themes or materials. “We’re looking
for commonalities,” he said.
In one gallery, a sculpture of Alexander
the Great will be displayed between a figure
of a Roman senator in a toga and a Buddhist
Bodhisattva. “What we’re saying might be
complex, but kids will get it in a glance,” he
added. “All three figures have these same
flowing garments, the same poetry.”
Another gallery will show Gilbert Stuart’s
1822 portrait of U.S. President George Washington next to Jacques-Louis David’s 1803
imperial view of “Napoleon Bonaparte
Crossing the Alps.” A scripture gallery will
show an ancient manuscript of the Koran, a
Gothic Bible and a Torah scroll—a provocative combination intended to underscore the
universal values of the museum, he added.
Nudes, on the other hand, will be scarce, at
least at the outset.
Some art historians like Andrew McClellan of Tufts University have criticized the
decision to bring in and exhibit Western art
in Abu Dhabi instead of cultivating a homegrown collection. In the Journal of Curatorial Studies, Mr. McClellan wrote about
“how difficult it is to unthink western taxonomies” and accused the Louvre of “essentially reproducing itself in the Persian Gulf.”
Mr. Rabaté said the museum’s mix-andmatch approach is meant to counter conventional ideas about art-history hierarchies.
That’s why an 8,000-year-old figure with
two heads from Jordan will get the same
treatment as a Benin bronze head or Leonardo da Vinci’s “Portrait of a Woman, also
called La Belle Ferronnière.”
The success of Louvre Abu Dhabi could
set the tone for a much bigger effort under
way in the region. It is one of four powerhouse museums the Emirati government
plans to cluster on a man-made island in the
capital. The goal is to make Abu Dhabi a cultural destination—and yet a decade on, the
Louvre is the only project to be finished.
Nearby, foundation pillars have been poured
for Frank Gehry’s Guggenheim Abu Dhabi,
but work stalled over reports of migrant labor abuses and construction snags. Ground
hasn’t broken on two spaces designed by
Zaha Hadid and Tadao Ando. Last week, the
British Museum said its longstanding partnership with Norman Foster’s Zayed National Museum, which will chronicle Emirati
history, has timed out and any future art
MARC DOMAGE/LOUVRE ABU DHABI (2); MUSÉE DU LOUVRE (CENTER)
A gallery, left, at Louvre Abu Dhabi, which will
be exhibiting works including ones by Leonardo
da Vinci, below, and Ai Weiwei, right.
loans to the new space will need to be negotiated. Mohammed Al Mubarak, chairman of
the commissioning Department of Culture
and Tourism, said officials will award construction contracts for the Zayed in the next
two months and that he is “100% confident”
that the remaining museums will be built.
“We’re working on getting a realistic, tangible time frame right now,” he added.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A14 | Wednesday, November 8, 2017
SPORTS
BASKETBALL
A Tech Startup That Changed the NBA
Israeli-based SportVU turned an ordinary basketball game into a data set rich enough to alter behavior across the league
BY BEN COHEN
Miky Tamir, left, and Gal Oz,
right, were behind a tech
startup called SportVU.
DAVID VAAKNIN FOR THE WALL STREET JOURNAL
THE UNLIKELY characters behind
the most crucial basketball innovation since the 3-point line had no
reason to believe they would play
important roles in the making of
the modern NBA.
One was an esteemed physicist
who liked soccer more than basketball. One was a biomedical engineer who helped start a tech firm
days after leaving the military. And
both were based in Israel.
Gal Oz and Miky Tamir invented
a product called SportVU—as in a
new way to view sports—that used
high-resolution tracking cameras in
the catwalks of arenas to capture
the precise movements of players
thousands of times per minute.
SportVU turned an ordinary
basketball game into a data set
rich enough to alter behavior in
this billion-dollar industry. It
changed the way basketball teams
make decisions, basketball players
are valued and basketball fans understand the sport. It even
changed the game itself.
But the league’s SportVU era is
already over. Before this season, the
NBA awarded its player-tracking
contract to another company.
SportVU was in and out in only
seven years.
The lesson of SportVU, though, is
how quickly and how radically the
NBA became a different league in
that time because of its data. At no
point in history has the game transformed as much as it has in recent
years. And that revolution was
made possible by two unknown people living thousands of miles away.
Oz and Tamir met in a very Israeli manner. Oz happened to know
someone from the army who was
married to someone who had studied with someone who happened to
know Tamir. It was only a matter of
time before they built a tech company based on military expertise.
Tamir had a Ph.D. in physics and
decades of experience working for
Israeli nuclear research centers and
defense contractors. He was one of
his country’s brightest minds in the
world of drones, satellites and computer imaging. And then he became
an entrepreneur. He’d already
started one company when he
founded SportVU and hired Oz in
2005. Oz was looking for a job after
10 years in the Israel Defense Forces
with a unit that specialized in what
he called “visual-intelligence-related
work—I cannot be more specific.”
The idea behind SportVU was
ambitious. Their goal was to apply
optical recognition techniques to
sports by recording the precise coordinates of the action far below
their cameras. But they had made
enough progress after several years
in soccer that Stats LLC, a sports-
data company based in Chicago,
wanted to acquire their business.
The due diligence was assigned to a
new employee named Brian Kopp.
He flew to Tel Aviv for a tour of
SportVU’s one room office.
Kopp’s job was to sell their idea
to a major American sports league.
He tried the NFL first. Soon there
were 20 cameras on the roof of
Lambeau Field tracking the Green
Bay Packers. But another league
would benefit from that experiment. When the NFL declined to
make a deal, Kopp started pursuing
one with the NBA.
Israel hadn’t produced any NBA
players when the league’s top executives, including future commissioner Adam Silver, gathered in a
hallway before Game 4 of the 2009
Finals for a glimpse at SportVU.
Game 3 had been played under the
eyes of its six cameras in the sky,
and Kopp shared the results with
his influential audience. “It was
like the Pong version of videogames,” he said. “It was so simple.
But people were blown away.”
It only added to SportVU’s exotic appeal that it was often said
to be developed with “Israeli missile-tracking technology.” Except
that was a myth. There was never
any Israeli missile-tracking tech-
nology behind SportVU—though
Oz says it wouldn’t have mattered
even if there were.
“Tracking a missile is much easier than tracking a ball,” he said.
“A missile is more predictable.”
The Dallas Mavericks were the
first NBA team to commit, and
owner Mark Cuban was so impressed that he asked how much it
would cost to make sure no one
else could buy SportVU access.
Kopp wouldn’t consider the offer.
He believed SportVU would be
most valuable when every team
had it. The competitive advantage
wasn’t the raw data itself, he explained, but in how teams used it.
Then he received another request from the Mavericks: “Mark
Cuban would like you to track the
referees.” Kopp was hesitant. He
told the Mavs he didn’t want to
risk inflaming his relationship with
the league office by embracing a
sensitive issue. The team’s response: “Mark Cuban would like
you to track the referees.” SportVU
began tracking the referees.
The Mavericks’ arena was
equipped with SportVU’s cameras
before the 2011 season. That season ended with the Mavericks winning the NBA championship.
“They changed the analytics
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SINGULAR HOOPSTERS | By Peter Gordon
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Solve this puzzle online and discuss it at WSJ.com/Puzzles.
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s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
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29 20 pc 30 20 sn
Atlanta
64 49 sh 60 46 r
Austin
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Baltimore
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Boston
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Burlington
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Dallas
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Las Vegas
71 51 s
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52 38 c
61 36 pc
Los Angeles
75 58 s
70 55 pc
Miami
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86 73 pc
Milwaukee
46 34 s
39 20 pc
Minneapolis
39 18 s
26 13 s
Nashville
56 40 c
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Oklahoma City
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Miami
gested they should prioritize the
game’s most efficient shots and
launch more 3-pointers than anyone ever imagined. NBA executives
say the enormous amount of data
that SportVU only accelerated that
process. Now they can barely recall
the days before SportVU’s data
even though they were only four
years ago.
But Stats’s official contract with
the NBA expired this season. While
it’s still involved with the league,
SportVU’s cameras were replaced by
those from Second Spectrum, a Los
Angeles startup founded by computer scientists who were professors
in artificial intelligence when they
started playing with SportVU’s data.
The people responsible for
SportVU were no longer with the
company by then. Tamir was gone
after the Stats acquisition; Oz
stayed for the NBA invasion. They
later started another company together called Pixellot. Oz is still its
chief technology officer; Tamir has
since founded three more companies. And it’s partly because of
them that Tel Aviv is such a hub of
sports technology that Oz was in a
bar last week and overheard a discussion of SportVU’s impact on the
NBA. He walked over and joined
the conversation.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
V
Vancouver
game,” Cuban said in an email.
“They had a huge impact.”
The first six NBA teams to adopt
SportVU were the Mavericks,
Spurs, Rockets, Thunder, Warriors
and Celtics. They’re also the six
NBA teams with the most wins over
the last decade.
SportVU’s engineers were testing
Boston’s arena one day, when they
encountered a problem. Their cameras had trouble following the ball.
The Celtics’ famous parquet court
was too dark. As they planned for a
meeting with the team’s brass, one
Israeli engineer told Kopp he
planned to ask the Celtics a question: Would they consider lightening the color of the floor? He might
as well have wanted to paint the
White House purple. Kopp made
him promise not to bring it up.
SportVU was so widely used by
2013 that the NBA decided to make
a deal covering the entire league.
And it was around this time when
teams realized something peculiar:
They had been playing basketball
the wrong way.
This technology arrived at the
exact moment the league was letting analytics influence strategy
and style. The best teams were beginning to understand that all the
information at their disposal sug-
E N D O F S T O R Y
S C A R F
S T Y
P O L L
O G L E
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | A15
OPINION
Who Leaked the Paradise Papers?
With the latest leak of
international financial records
comes evidence of one
BUSINESS
unambiguWORLD
ous
crime
By Holman W.
that won’t be
Jenkins, Jr.
investiga te d — t h e
theft of the papers themselves
from Appleby, a global law
firm based in Bermuda.
Rather, the trope the press
strains to enact is that the clients whose documents were
stolen are themselves guilty of
shady doings. Commerce Secretary Wilbur Ross, who ran a
private-equity firm, owns a
stake in a shipping firm that
has a Russian customer. Yuri
Milner, a Russian fund manager who controls stakes in
Facebook and Twitter, has his
own investors, among which is
a state-owned Russian bank.
The so-called Paradise Papers are the latest electronic
document dump received by
the so-called International
Consortium of Investigative
Journalists. The previous
dump, known as the Panama
Papers, in unminced words
was described by Vladimir Putin’s personal spokesman as a
direct attack on Mr. Putin.
This is not to rule out a sincere whistleblower or the proverbial 400-pound teenager,
but when so much hacking for
commercial or political purpose these days is attributed
to national actors, the question does leap to mind: Which
nation’s intelligence agency
might be responsible for the
leak? And what is the motive?
Are the many whose financial
privacy has been invaded
merely collateral damage in an
attempt to hit a single target?
Divulged by the consortium
is only that the Paradise Papers, like the Panama Papers,
were bestowed upon a German
newspaper, the Süddeutsche
Zeitung. How the papers came
to be stolen and deposited in
the hands of the media is one
subject that does not stir the
investigative juices of the
world’s media. The press’s job
apparently is to follow where
the documents lead, not where
they come from. Is this not a
blind spot? Is there not something strangely blinkered, if
not actively disingenuous
about a consortium (virtually
a monopoly) of investigative
journalists that seems to exist
to do the bidding of its undisclosed sources?
Go back to Mr. Ross: The
news reports based on the
documents do not allege his
shipping stake was illegal.
They do not allege his foreignregistered holding company
was illegal. They do not allege
he failed in any disclosure
duty.
So what exactly is going on
here? Does the media stand
ready to publish stolen bank
records of anybody and everybody it finds interesting?
Such massive document
thefts don’t just happen; they
are motivated. The press stories all come with a manufactured ambience of whistleblowing unsupported by any
claimed fact. The leaker’s mo-
tivation is not even intimated
to exist as a question.
All this comes as Americans
are encouraged to presume
that it’s shocking if any American actually knows a Russian.
To have done business is beyond the pale.
Such ninnyism is of extraordinarily recent vintage. Two
years ago, while detailing the
seamy role of the Clinton
Foundation in a Russian nuclear deal, the New York Times
Is the consortium
of journalists
fronting for an
intelligence agency?
also correctly noted not once
but three times that promoting business ties with Russia,
at the time, was the avowed
and consistent policy of the
U.S. government right up until
Mr. Putin’s Crimea grab in
2014.
When Paul Manafort was
cavorting with Putin-backed
Ukraine President Viktor Yanukovych in 2013, the latter said
“we have to move towards European integration” at an
event attended by Bill Clinton
and hosted by Victor Pinchuk,
a Ukrainian oligarch and Yanukovych supporter who gave at
least $10 million to the Clinton
Foundation.
We could go further back.
At least one big company was
happy with Jimmy Carter’s
election: Georgia-based CocaCola, which saw a chance to
catch up with Pepsi, which had
ridden into Brezhnev’s Russia
on Nixon’s coattails.
Anything is possible that is
not precluded by the laws of
physics, including a criminal
conspiracy of Mr. Putin and
Donald Trump. If anybody did
or said anything truly damning, our guess is Mike Flynn,
in some context or other, suggesting to a Russian contact
that Mr. Trump’s promise of
better relations would not
come about if he were not
elected.
But a charge of conspiracy
requires proof, not just a general dislike of Mr. Trump. Not
for the first time we suggest
the useful parallel is not
Watergate but the Pentagon
Papers. The moment begs for a
coming clean on how so much
U.S. government-sponsored
trade, investment, political
lend-lease (Manafort and the
Podestas) and, yes, openness
to Russian kleptocrats buying
Fifth Avenue apartments and
Miami condos, didn’t succeed
in making Mr. Putin a friend.
Which brings us back to the
Paradise Papers, which may—
may—be a down payment on
such an air-clearing. Like the
Panama Papers before them,
they are particularly suggestive of how Mr. Putin may
have used Mr. Milner, or in the
case of the Panama Papers,
cellist Sergei Roldugin, to hide
his own often-alleged offshore
wealth.
If the press bothered to
care who leaked the papers,
we might be able to make
more intelligent inferences
about their significance.
Donald Trump’s Belated Civics Lesson
President
Trump
has
gradually discovered the
meaning of
the oath he
POLITICS swore on Jan.
20, and he
& IDEAS
doesn’t seem
By William
to like it. In
A. Galston
the course of
an interview
on “The Larry O’Connor
Show” last week, he said,
“The saddest thing is that because I’m the president of the
United States, I am not supposed to be involved with the
Justice Department. I am not
supposed to be involved with
the FBI. I’m not supposed to
be doing the kinds of things
that I would love to be doing.
And I’m very frustrated by it.”
Meet James Madison’s
Constitution, Mr. President. It
is nothing like a family business. It is designed to frustrate you.
The point of the Constitution is not to do the bidding
of any one institution, let
alone a single individual. It is
to preserve liberty by thwarting tyranny, which Madison
defined in Federalist 47 as
“the accumulation of all powers, legislative, executive, and
judiciary, in the same hands.”
The preamble to the Constitution provides a terse
statement of the purposes it
intends to promote. The body
of the document lays out in
some detail the institutions
through which these purposes
may be pursued legitimately.
They channel power, and in so
doing they limit it.
These forms matter. In our
system, public officials must
not only do the right thing;
they must do it in the right
way. Good intentions that run
roughshod over institutional
limits are abuses of power.
This brings us to the Justice Department. It is part of
the executive branch, but it
exists only by act of Congress—to be precise, two
acts. The Judiciary Act of
1789 created the office of attorney general. Nearly a century later, in 1870, Congress
created the Justice Department, giving the attorney
general additional responsibilities (including the supervision of U.S. attorneys) and a
staff to help him fulfill his
new duties.
The Judiciary Act provided
that the attorney general
should be a “meet [that is, fitting] person, learned in the
law,” and it offered a precise
definition of the attorney
general’s duties: “to prosecute
and conduct all suits in the
Supreme Court in which the
United States shall be concerned, and to give his advice
and opinion upon questions of
law when required by the
President of the United
States, or when requested by
the heads of any of the departments, touching any matters that may concern their
departments.”
This language makes clear
what every president should
understand the day he enters
office: The attorney general’s
first duty is to the law, not to
the president. The chief executive may require the attorney general to render an
opinion, but he cannot tell the
attorney general what the
content of the opinion should
be. Nor can the president tell
the attorney general whom to
investigate or prosecute.
These are supposed to be legal, not political, judgments.
The president is
learning how the
Constitution works—
and he’s not happy.
Mr. Trump does not seem
to understand this. He has
made public statements intended to pressure Attorney
General Jeff Sessions to open
politically driven investigations with an eye toward
eventual prosecutions. Before
he left for Asia, for example,
he told reporters that the
Justice Department “should
be looking at the Democrats.”
Demands from his core supporters add to the political
pressure on what should be
legal determinations. The
president’s conduct is a reminder that government relies not only on constitutional
forms, but also on constitutional norms.
Michael Mukasey, whom
President Reagan nominated
to the federal judiciary,
served as attorney general
under George W. Bush, where
he was a staunch defender of
the war on terror. Years later,
he became a fierce critic of
Hillary Clinton. But after Donald Trump led chants of “Lock
her up!” during his presidential campaign, and threatened
Mrs. Clinton with prosecution
during a debate, Mr. Mukasey
could not remain silent. “It
would be like a banana republic,” he said. “Putting political
opponents in jail for offenses
committed in a political setting . . . is something we
don’t do here.”
Mr. Mukasey’s comments
highlight the importance of
the norms that undergird
America’s constitutional order. Throwing political opponents in jail undermines the
rule of law and erases the line
between law and politics. This
is not what constitutional
democrats do. This is what
autocrats do—in Turkey, in
Venezuela, and wherever
leaders backed by mobs and
majorities are emboldened to
push for total power.
Elected officials across
party lines must put the
president on notice: Any further attempts to manipulate
the attorney general, the Justice Department, the FBI or
the special counsel in the
performance of their duties
under law will be rebuked
and resisted.
Chinese Telecom Threatens U.S. Security
By Patrick B. Pexton
W
hen President Trump
meets with Chinese
leaders this week, he
should consider an issue that
has worried U.S. lawmakers
for years: the possibility of
the Chinese telecommunications company Huawei entering the U.S. market.
Huawei is a telecom giant,
so naturally part of this worry
is about competition. It’s the
third-largest
smartphone
maker worldwide and also
makes the back-end switches,
routers and other equipment
that make cellular networks
function.
But the real concern is national security. Since 2011,
when the House Intelligence
Committee first began looking at Huawei, members of
Congress have been concerned that by using Huawei
equipment, Americans could
invite the Chinese company to
siphon information about
them back to the Chinese
government.
Huawei calls itself an em-
ployee-owned company, so its
books are opaque to the public; and it’s run by a private
board whose members were
first disclosed in 2011. Its
founder and CEO has longtime
Giving Huawei the
green light would
allow Beijing to spy
on Americans.
ties to China’s military, which
is true of many Chinese companies. But U.S. lawmakers
think Huawei’s ownership is
particularly problematic because of the role telecommunications technology plays in
national infrastructure.
In 2012 the House Intelligence Committee, after a
monthslong investigation, for
national security reasons
urged U.S. companies not to
form partnerships with Huawei and another big Chinese
telecom company called ZTE.
It also urged the Committee
on Foreign Investment in the
U.S. to block acquisitions,
takeovers or mergers of U.S.
companies with Huawei and
ZTE.
In 2012, the Australian government banned Huawei from
bidding on equipment for its
national broadband network
out of security concerns.
In 2013 the U.S. government barred the purchase of
Huawei equipment by several
U.S. government agencies, citing cybersecurity risks.
This year, T-Mobile won an
industrial-espionage lawsuit
against Huawei by showing
that the Chinese company had
stolen technological secrets
from clean rooms at T-Mobile’s testing center.
And Commerce Department
officials are currently investigating whether Huawei broke
American trade controls on
Cuba, Iran, Sudan and Syria,
according to the New York
Times.
Lawmakers are also worried because Huawei is a
prime bidder for South Korea’s new 5G nationwide cel-
lular network. This matters
to the U.S. because in a confrontation with North Korea,
the U.S. military may need to
use this infrastructure to
communicate.
Huawei has dismissed
American concerns, arguing
that it is a legitimate business
with the right to compete in
the U.S. under WTO rules.
This is true.
But Congress and Mr.
Trump should be vigilant. In
the 2016 elections, Russia
hacked the Democratic Party,
Twitter, Facebook and Google,
all without owning a major
network provider in the U.S.
But giving Huawei a large
telecommunications presence
could make America an easy
target for Chinese spying.
Congress and Mr. Trump
should continue to monitor
Huawei and consider taking
legal steps to block its entry
into the U.S. market.
Mr. Pexton is defense and
foreign policy editor for CQ
Roll Call and a former Washington Post ombudsman.
BOOKSHELF | By Allen C. Guelzo
Nervous
Neighbors
The Thin Light of Freedom
By Edward L. Ayers
(Norton, 576 pages, $35)
S
ocial history, once rare, is by now a full-fledged genre.
Written from “the bottom up,” it passes by grand
narratives of nations, wars and politics in order to
chronicle the vast swaths of humanity who never made it to
prime time. Still, it took a while for social history to catch
up to the American Civil War, where politics and battles
could hardly be ignored. In 1990, the historian Maris
Vinovskis, in “Toward a Social History of the American Civil
War,” issued a call for social historians to set their sights,
however belatedly, on the Civil War. And did they ever: The
common complaint now is that the military and political
history of the war has been so nearly shoved off the table
that the scholarly quarterlies devoted to the Civil War era
scarcely notice war or politics.
Edward Ayers’s “The Thin Light of Freedom” is a kinder,
gentler version of Civil War social history. Beginning in the
early 1990s, Mr. Ayers began assembling a data bank on the
experience of two
counties on either side of
the Mason-Dixon line: Augusta County in Virginia’s
lower Shenandoah Valley
and, to the north, Franklin
County in Pennsylvania. Mr.
Ayers’s data sets included
newspaper articles, census
and tax records, and the
diaries and letters of smallrole players. Because slavery
was legal in one but not in the
other, the two counties
occupied very different social
worlds and, naturally, belonged
to different sides in the war. From
the data he had amassed, Mr. Ayers
assembled a pioneering online library and wrote a study, “In
the Presence of Mine Enemies” (2003), that covered the counties’ experiences from the John Brown raid at Harpers Ferry
in 1859 to the eve of the Gettysburg campaign in July 1863.
“The Thin Light of Freedom” extends the story from
Gettysburg into the Reconstruction era and features many
of the individuals whom Mr. Ayers introduced in “In the
Presence of Mine Enemies,” especially Joseph Waddell, a
decent and almost reluctant Virginia convert to the
Confederacy. Mr. Ayers’s earlier book was dominated by a
spirit of anxiety: The Virginians were anxious about the
Brown raid and the rightfulness of slavery and secession,
the Pennsylvanians about the fate of the Union during a
period of repeated military defeats. In “The Thin Light of
Freedom,” the dominant tone is regret.
Among much else, we see the confidence of the white
Southerners in Virginia collapse as their economy implodes
and their valley community is burned-over by Union
armies. When news of Abraham Lincoln’s re-election arrives
in November 1864, Waddell asks in despair: “How can we
endure it!” The hollow-eyed Southerners who stare at us
Two counties separated by the Mason-Dixon line
experience the Civil War and its aftermath
differently, yet share a sense of anxiety and regret.
across Mr. Ayers’s campfires are not die-hards. Their
emotional investment in the Confederacy is shallow, and as
early as 1863 Waddell admits to his diary that he never
believed the Confederacy was a good idea. “I never ceased
to deplore the disruption,” he later conceded, “and never
could have loved my country and government as I loved the
old United States.”
Nevertheless, the Virginians kept on filling the ranks of
the Confederacy’s armies until nearly the war’s end, a fact
that Mr. Ayers does not emphasize enough. And although
they let slavery disappear without much reluctance, they
fought aggressively against Republican efforts to educate
the freed slaves and then grant them equal voting rights.
By the same measure, there are no mythical “loyal slaves”
in Mr. Ayers’s account of the war’s closing years; nor are
there any “grateful” freedmen afterward. Infuriated whites
raged against former slaves whom they thought had no
proper idea of freedom. Of course the freedmen knew
exactly what they wanted, which was precisely the freedom
that their former masters had all along enjoyed.
In Pennsylvania’s Franklin County, the residents fared
little better. They coped unhappily with invasion in 1863
(and the disgraceful kidnapping of free blacks by the
Confederate army); retaliation for the North’s destruction of
Southern property (in the form of the Confederate burning
of Chambersburg, Pa., in 1864); and lethal political divisions.
As late as 1865, Democratic voting power remained strong
in Franklin County, and Democratic newspapers dismissed
Lincoln’s majestic second inaugural address as “mere trash
. . . unworthy of comment.” The Pennsylvanians were
plagued by a fearful uncertainty about what role the newly
freed slaves would play in a new American world, and while
Republican policies staked out formal protections for black
civil rights, the tidal return of Democratic majorities in
Franklin County eroded the will to enforce them.
Franklin and Augusta counties were active theaters of
war, but military events are not Mr. Ayers’s long suit. There
are routine mistakes—about who was in command of what
and what numbers were commanded when—in his account
of the rebel invasion of Pennsylvania in 1863; and, in what
is surely the misprint of the year, he dates the surrender of
Robert E. Lee at Appomattox to April 9, 1864, one digit and
a universe away. Yet he compensates for these slips with a
shrewd assessment of Union Gen. Philip Sheridan’s scorchedearth campaign in the Shenandoah Valley in 1864, which, Mr.
Ayers shows, inflicted far less damage than either valley
farmers or Sheridan later claimed. He also captures the
tenterhook experience of Republicans in the 1864 presidential election, which fluttered in the balance in key states like
Pennsylvania far longer than Lincoln would have liked.
“The Thin Light of Freedom” is beautifully, even
spaciously written and paced at an adagio—an elegy for
people trapped in webs of politics and war that they had,
for the most part, spun for themselves. It may not quite
persuade us that the evaporation of the war’s political and
military history is easily acceptable, but it does remind us
that not everyone who fought or endured the war’s
agonizing conflicts was a soldier.
Mr. Guelzo, a professor of the Civil War era at
Gettysburg College, is the author of several books, including
“Gettysburg: The Last Invasion.”
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Wednesday, November 8, 2017
* *
THE WALL STREET JOURNAL.
OPINION
D
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
South Korea’s Bow to Beijing
Good Science Should Rule U.S. Climate Policy
onald Trump on Tuesday praised Moon President Moon to back down on Thaad. Official
Jae-in for “great cooperation” on con- spokesmen and state-run media blamed Seoul
taining the threat from North Korea for harming relations. Beijing closed South Koand said there has been “a lot
rean-owned stores in China,
Seoul caves on Thaad stopped Chinese tourists from
of progress.” The South Korean President also made a
and even blocked the
missile defenses and a visiting,
show of unity after their sumbroadcast of Korean television
democratic alliance.
mit in Seoul, but Mr. Moon’s
dramas.
recent actions suggest he is an
Last week Mr. Moon
unreliable friend.
folded. Foreign Minister Kang
Mr. Moon favors appeasing Kim Jong Un to Kyung-wha announced a deal to settle the
lower tension on the Korean Peninsula, includ- Thaad dispute on Chinese terms. South Korea
ing direct talks even as the North continues its promised not to deploy more Thaad radars and
nuclear and missile tests. He wants to reopen launchers, leaving South Korea vulnerable to
the Kaesong Industrial Zone that provided future North Korean attacks, since the six curPyongyang with about $100 million in hard cur- rent launchers don’t cover northern South Korency a year. That’s bad enough, but Mr. Moon rea, including the capital Seoul. Without more
is also working against U.S. policy in the wider launchers, North Korean missiles could overregion. Last week he caved to Chinese pressure whelm the system.
on missile defense, rewarding Beijing for its
Seoul also agreed not to join America’s rebullying behavior and support for the Kim Jong gional missile-defense system, which will limit
Un regime.
the effectiveness of the defenses in South Korea
Earlier this year, the missile threat from the and Japan. And South Korea agreed not to join
North caused Seoul to deploy the U.S.-made a military alliance with the U.S. and Japan in the
Terminal High-Altitude Air Defense (Thaad), future. So Beijing achieved its goal of stymieing
which can shoot down missiles in a range of the U.S. agenda of collective defense in Asia
more than 200 kilometers. Beijing objected along the lines of Europe’s NATO.
forcefully, claiming that the system’s powerful
What did Seoul get in return? A meeting beradar could monitor China’s nuclear missile tween Mr. Moon and Chinese President Xi Jinsites. Thaad also meshes with other U.S. missile ping on the sidelines of this week’s APEC sumdefense systems at sea, in Japan and on Ameri- mit in Vietnam, as well as a trip to Beijing this
can territory.
year. China tacitly agreed to stop its embargoes
China’s larger fear is that South Korea will on South Korean products. No word on whether
be drawn into a closer relationship with other it will stop supporting Pyongyang with oil and
U.S. allies. A key theme of Mr. Trump’s trip is food, but don’t count on it.
cooperation among the region’s democracies to
Mr. Moon has called for “balanced diploprotect a “free and open Indo-Pacific,” building macy” between the U.S. and China. But his willon past efforts to deepen ties between South ingness to compromise the security of his own
Korea and Japan. If South Korea were to put country and its allies in the face of Chinese
aside its reservations about working with pressure is anything but balanced. It’s underJapan, it would deal a serious blow to China’s standable that the U.S. and South Korean Presibid for hegemony in Asia.
dents showed a united front Tuesday, but Mr.
Beijing unleashed a diplomatic and economic Moon’s actions have undermined the alliance
assault this year to convince newly elected against Kim Jong Un.
I
Koskinen’s Parting Gift From the IRS
RS Commissioner John Koskinen has made 2017. This comes as premiums continue to rise
no secret of his contempt for Republicans on the ObamaCare exchanges.
who tried to hold his agency to account for
The mandate is particularly burdensome for
Tea Party targeting. His paysmaller job creators hardObama’s tax man rolls pressed to comply with an exback as he walks out the door
is a major hit on employers.
complex manMnuchin to enforce the traordinarily
The IRS confirmed Tuesday
date that requires them to
that it is now for the first time ACA’s employer mandate. report on the status of every
beginning to enforce the
employee and dependent. The
ObamaCare employer manletters are also a blindside hit,
date, issuing thousands of penalty letters to since the IRS was silent about its plans.
noncompliant companies. The letters are on the
Treasury Secretary Steve Mnuchin could
way to firms with more than 50 employees that have overruled Mr. Koskinen and delayed enhave failed to provide what ObamaCare defines forcement until the IRS could better prepare
as qualifying coverage to its workers. The let- the business community. The IRS is not an inters reach back to 2015, setting up companies dependent agency but is part of Treasury, and
for years of penalties.
the IRS Commissioner reports to the secretary.
The IRS was supposed to start this enforce- The employer mandate remains the law, though
ment in 2014, but the Obama Administration Republicans on Capitol Hill have been trying
never got around to it. The employer mandate to repeal it.
is among the bill’s most unpopular provisions
Treasury’s defense is that the law says the
and the White House feared the economic fall- IRS “shall” enforce the mandate, and a Treasury
out. Mr. Koskinen long attributed the delay to spokesperson said: “Based on a review by Treaa lack of resources and the time it took to stand sury lawyers, there is no ground for the Secreup enforcement systems.
tary to direct the IRS to not send out the letters
Yet after Donald Trump’s inauguration the to collect this tax.” But that view was hotly conIRS suddenly found its giddy-up, and last week tested inside the White House, and after so long
it quietly issued agency guidance. Mr. Koski- a delay, allowing some time for a new IRS chief
nen’s last day in the job is Thursday. You decide to review is hardly stretching the law.
if the timing is a coincidence.
At Treasury Mr. Mnuchin has ducked every
Nobody knows how many businesses will be fight that looks politically tough—on marginal
hit, but by some estimates it will be tens of tax rates, the Federal Reserve, bank regulation,
thousands. The Congressional Budget Office es- the MetLife case, the Consumer Financial Protimated in 2015 that employers would owe $9 tection Bureau. It’s a shame he’s now taken a
billion in fiscal 2016 and $13 billion in fiscal powder on Mr. Koskinen’s parting gift.
P
Trump’s Antiterror Omission
resident Trump campaigned on a that Saipov was read his Miranda rights at
tougher approach to terror, but you Bellevue hospital hours after he was captured.
wouldn’t know it from his policy on in- Our sources say local law enforcement made
terrogating captured terrorthis decision absent a strategy
Where’s the new
ists. The past 10 days have
or federal protocol. A day aflanded two terrorists behind
ter the attack, Saipov was
policy
for
handling
bars: New York City attacker
charged in a civilian criminal
captured terrorists?
Sayfullo Saipov and Benghazi
court.
militant Mustafa al Imam.
Such haste means critical
Both cases offer the chance to
questions may go unanswered.
reset Obama-era policy on handling high-value Authorities have speculated that Saipov acted
combatants, but Mr. Trump doesn’t seem to alone. But the 29-year-old Uzbek immigrant
have a different policy.
claims affiliation with Islamic State, and in AuThe Obama Administration preferred killing gust 2015 he reportedly attended a Florida wedterrorists overseas instead of capturing them, ding where one of the other guests was under
precluding interrogation. Enemy combatants federal surveillance in a terrorism investigation.
captured either in the U.S. or abroad typically Now that Saipov is lawyered up, we might never
faced charges in civilian criminal courts. Propo- learn everything we should about his radicalizanents of this approach have touted the large tion and life in America.
number of successful terror convictions, but
In al Imam’s case, the Trump Administrathat’s missing the point. Civilian court proce- tion’s policy is indistinguishable from Mr.
dures hamper interrogation that might prevent Obama’s. In addition to being a Libyan national,
a future attack.
al Imam is among the suspected masterminds
Then again, at least Mr. Obama had a pre- of the 2012 attack on the U.S. consulate in Bengferred process for high-value detainees. That’s hazi. But we’re told he had been on a Navy ship,
more than President Trump has developed, as and he was arraigned Friday in a civilian court
far as anyone can tell.
in Washington.
The day after the Halloween terror attack in
Al Imam should have been labeled an enemy
New York, Mr. Trump told reporters: “Send him combatant, permitting detention for the durato Gitmo. I would certainly consider that, yes.” tion of hostilities. The rules for interrogation
But a day later, the President tweeted that while are more flexible, and questioning can last as
he “would love to send the NYC terrorist to long as necessary. After his interrogation is
Guantanamo,” military commissions moved complete, a combatant can be dispatched to a
slower than the U.S. court systems. “There is civilian court or military tribunal.
also something appropriate about keeping him
The lack of protocols for handling terrorists
in the home of the horrible crime he committed. after nearly 10 months in office signals a trouShould move fast. DEATH PENALTY!”
bling lack of seriousness about a crucial antiterMr. Trump’s incoherence carries real risks ror duty. Mr. Trump’s tough-sounding tweets
to national security. A Nov. 1 complaint revealed are belied by his Obama-like policy.
It’s unfortunate that Steven E.
Koonin chose to wait until months after an extensive public review process
to critique the Climate Science Special Report (CSSR), which he attacks
in “A Deceptive New Report on Climate” (op-ed, Nov. 3).
Had he suggested further explanation of decadal variability in global
mean sea-level rise during the review
process, it might have been added by
the authors. They might have noted
that the rate of global sea-level rise
today is likely faster than during its
previous high in the 1930s-40s, also a
period of relatively rapid temperature
increase. Further, they might have
noted the robust acceleration in sea
level since 1900 that has been revealed by multiple analyses.
As a scientist and author on the
Climate Science Special Report, I
stand by its conclusions: The rate of
global sea-level rise since 1900 has
been faster than during any comparable period in at least 2,800 years. It
has led to about seven to eight inches
of global sea-level rise, about three
inches of which have occurred since
1993. Human activities have contributed substantially to this high rate,
which is a major contributor to the
accelerating increase in tidal flooding
in over two dozen Atlantic and Gulf
Coast cities. One to four more inches
of rise will likely occur over this century, depending in part on carbon-dioxide emissions, though levels as high
as eight feet cannot be ruled out. The
points that Mr. Koonin raises are minor comments about framing; the underlying scientific evidence is correct.
ROBERT E. KOPP, PH.D.
Rutgers University
New Brunswick, N.J.
I am the former executive officer
of the U.S. National Academy of Sciences and National Research Council
(1994-2011) and former Science and
Technology Adviser to the U.S. Secretary of State (2011-14).
The quickest way to politicize scientific knowledge, what is known and
not known, is to treat it as no different from other aspects of a contentious public-policy debate. Mr.
Koonin’s op-ed provides a good example. His so-called red team/blue team
proposal for climate science would
create two teams to debate scientific
uncertainties and their significance.
The teams would include nonscientists and scientists outside the relevant disciplines. This effort in effect
becomes a political process with
value judgments and no guarantee of
an unbiased scientific assessment by
the most highly qualified experts.
I commend the Trump administration for not trying to suppress the
scientific judgments in the Climate
Science Special Report, which are
counter to the views of President
Trump, EPA Administrator Scott
Pruitt and others in the administration. If the Trump administration really wanted to know the current state
of scientific knowledge related to climate change, all it has to do is read
the reports of the National Academies
as well as the CSSR.
E. WILLIAM COLGLAZIER, PH.D.
Washington
The problem with analyzing data
points in weather is that in aggregate
they are not strictly ergodic (subject
to mathematically predictable outcomes) but rather are emergent phenomena and therefore intrinsically
unpredictable.
The middle ground in a healthy debate on climate change is to employ
cost-effective measures to protect air
and water safety first (e.g., Los Angeles and Flint, Mich.). Antagonists in
the debate on how to respond to future environmental threats too often
adopt a religious fervor that only
confuses the public. Scientists should
know better even if politicians don’t.
RALPH R. OCAMPO, M.D., FACS
San Diego
Consolidation Doesn’t Mean Patients Benefit
Your editorial “Game of HealthCare Thrones” (Oct. 30) describes the
motives that may have fed the proposed CVS-Aetna merger and the outcomes that could result from it.
Whether in response to government
regulation, market dynamics, the consumer revolution or other factors, the
business of health care is moving rapidly beyond the model we’ve become
accustomed to. Individual actors (like
CVS and Aetna) are broadening their
roles, and disrupters like Amazon are
making moves that could turn healthcare delivery upside down. We’ve seen
this coming for a while now—hospital
systems that double as insurers (Kaiser), retailers that provide health-care
services (CVS), and the shift is about
to accelerate dramatically. Are we
ready?
The CVS-Aetna merger is a double-
Competitive Pricing Dogs
California’s Heavy Pot Tax
Regarding your editorial “High on
Incentives” (Nov. 2): After the 21st
Amendment lifting prohibition in
1933, the excise tax rate on alcohol
was adjusted down to around 5% to
undercut moonshiners and to eliminate any continuing profit for the
mob. Later, the excise tax rate was adjusted up to approximately 15%. Mentor Capital’s elasticity analysis of the
cannabis tax load in various locales
versus illegal marijuana-market activity shows a roughly inverse linear relationship. That is if the tax rate is
45%, the illegal market will be 45% of
the whole cannabis market.
Many don’t know that since cannabis is a Schedule I drug, legitimate
cannabis-selling businesses and heroin
dealers alike cannot deduct operating
expenses, extraordinarily inflating the
effective tax rate on cannabis companies. Dropping Schedule I designation,
following the 1933 5% excise-tax
model for cannabis and later pegging
cannabis taxes to equal the alcohol-related tax rates would economically
eliminate the cartel involvement today
as the mob was undercut back then.
CHET BILLINGSLEY
Chairman & CEO
Mentor Capital, Inc.
Ramona, Calif.
CORRECTION
edged sword. We’ve long known the
market is going to outstrip the government in transforming health-care
delivery. And while the combined data
analytics resulting from the merger of
a leading insurer and a leading national pharmacy chain have the potential to benefit patients and consumers,
sadly the converse is often true. But
regulation isn’t the answer. It’s time
for the feds to step back and enable
innovation that produces a system for
the future. It’s time for the major
health-care industries—hospitals, insurers, pharmacy and others—to become truly consumer facing. And it’s
time for consumers to demand health
care that actually makes them healthy
when they need it, where they need it.
STEPHEN K. KLASKO, M.D., M.B.A.
President and CEO
Thomas Jefferson University and
Jefferson Health
Philadelphia
We’ve Only Just Begun the
Politically Correct Cleanup
Regarding the Nov. 1 Notable &
Quotable from Mark Tooley writing
about George Washington’s church
in Alexandria, Va., which is removing a plaque honoring Washington:
The decision of Christ Church to remove the plaques of George Washington and Robert E. Lee, both men
of unquestionable Christian character, has me pondering. By the same
logic, all ecclesiastical memorabilia
in all churches about Martin Luther
King Jr. should be removed owing
to his adulteries. And, horror, C.S.
Lewis smoked a lot. Dietrich Bonhoeffer conspired to assassinate
Hitler. Martin Luther had some
harsh words for Jews. Thomas More
persecuted Protestants. St. Paul advocated male headship in marriage.
The Apostle Thomas doubted
Christ. St. Peter denied Christ.
Surely all these names would also
be expunged from all sanctuaries,
sermons, hymnals, catechisms and
liturgies.
RAYMOND J. BROWN
Londonderry, N.H.
Pepper ...
And Salt
THE WALL STREET JOURNAL
An exhibition of the Gurlitt family’s Nazi-linked art at the
Bundeskunsthalle, Bonn, includes 20
works drawn from outside collections
that may have passed through Hildebrand Gurlitt’s hands. A review of the
show on Nov. 2, “What the Nazis
Took,” misstated the number.
Letters intended for publication should
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Wednesday, November 8, 2017 | A17
OPINION
A Strategy for the Post-ISIS Middle East
W
ith Islamic State
nearly vanquished in
Syria and Iraq, it’s
time for a serious debate
about
the
broader U.S. security strategy in the
Middle East. Leaving aside the Israeli-Palestinian peace process and
its unpromising near-term prospects, this debate must address the
array of issues affecting American
interests in the region: violent conflict, alliances, political and economic reform, and the central challenge of dealing with Iran.
The stakes are highest,
and the current dilemmas
most acute, in Iraq, Syria,
Egypt, Yemen and Jordan.
The U.S. currently leads a military
coalition in support of the Iraqi government and moderate insurgent
forces finishing off ISIS in Iraq and
Syria. American naval and air power
ensures the free flow of oil through
Persian Gulf waterways. Working
with the Gulf Cooperation Council,
as well as Israel, Jordan, Lebanon
and Egypt, the U.S. bolsters regional
defenses against ISIS, al Qaeda and
Iran. And it wisely tries to de-escalate disputes among its coalition
partners, such as the ugly row pitting Qatar against Saudi Arabia, the
United Arab Emirates and other
Sunni-majority states.
But the U.S. and its allies struggle
on other fronts. Most glaring is a
lack of a promising strategy
to end the region’s civil
wars and strengthen the
states suffering internal
conflict. Also missing is any
serious plan to advance economic and political reform
in the region, which is essential for long-term stability. The stakes are probably
highest, and the current dilemmas most acute, in Iraq,
Syria, Egypt, Yemen and
Jordan. Here is what Washington, working with allies
and regional partners,
should attempt in each:
• Pledge a longer-term
U.S. military presence and
aid package for Iraq, ideally
supported by the Gulf states
and NATO allies. Iraq has
suffered generations of war
and misrule, and years of
low oil prices. With ISISheld cities mostly liberated,
a successful rebuilding effort engaging Sunni Arabs, Shiites and Kurds
and preventing a return to civil war
or the arrival of ISIS 2.0 is urgent.
The stakes, and America’s previous
investment, warrant aid levels comparable to those showered on Afghanistan and Egypt. In the coming
months Iraq will need significant
help monitoring and restraining
Iran-backed Shiite militias as they
are disbanded and partially incorporated into Iraqi Security Forces.
• Similarly, limiting but not excluding Iran’s influence in Iraqi
Kurdistan would help bridge the internal political schisms that created
opportunities for Tehran in the first
place. With President Masoud Barzani out of office, there is a fresh
opportunity to make this diplomatic
démarche in a way that restores cooperation between the Kurds and
the rest of Iraq. A wise policy should
insist on an end to land grabs by
both sides.
• On Syria, the key word is regionalism. President Bashar Assad
isn’t going anywhere soon, yet the
U.S. cannot work with such a monster. He has permanently discredited
himself in the eyes of much of the
world. The U.S., its allies and global
aid agencies should work around his
government to secure and rebuild
the regions free of Assad’s rule and
ISIS’ interference. Some areas
should be treated as temporary autonomous zones. The West needs
more leverage in and around Idlib,
where the al Qaeda affiliate formerly known as the al-Nusra Front
remains active and our allies are
vulnerable.
• The Yemeni civil war has
spawned yet another humanitarian
catastrophe in the Middle East.
Since its 2015 invasion, a Saudi-led
coalition has been stuck in a quagmire. More than half the country’s
population has been displaced. Malnutrition is severe and widespread.
The country is experiencing the
world’s worst cholera epidemic in 50
years. The crisis presents a strategic
opportunity for Iran as well as al
Qaeda and perhaps ISIS. Washington
and Riyadh must try to advance a
durable peace process with support
from diplomatic partners in Europe
and elsewhere. The watchword here
is compromise—no outright military
victory appears to be within any-
Keep Twitter Accountable Without Censorship
By Adam Candeub
And Mark Epstein
I
n an effort to “take a more aggressive stance,” Twitter announced on Nov. 3 that it will enact new and revised rules later this
month to address graphic content,
unwanted sexual advances, violent
organizations, spam and “hateful”
symbols and imagery on the social
network.
But one of these things is not like
the others. Unlike regulating violent
or harassing content that interferes
with the experience of other users,
prohibiting “hateful” imagery, symbols and content is a vague and subjective restriction—and one that
would be unconstitutional if enforced
by the government.
Social-media companies
should lose their liability
exemption if their rules
aren’t viewpoint-neutral.
Twitter’s history of censoring content—such as when it blocked
(though eventually restored) a prolife ad by Rep. Marsha Blackburn and
suspended Trump adviser Roger
Stone’s account on Oct. 28—raises
doubts as to whether these new rules
will be applied fairly and consistently. The Anti-Defamation League,
a member of Twitter’s Trust and
Safety Council, includes the Confederate flag and Pepe the Frog in its database of hate symbols.
In reaction to political censorship
on social media, many populist conservatives, including Tucker Carlson, Ann
Coulter, and Steve Bannon, have called
for the platforms to be publicly regulated. This sentiment spans the political spectrum. After Twitter suspended
Harvey Weinstein accuser Rose
McGowan, left wing journalist Glenn
Greenwald tweeted: “At some point, it
will hopefully become clear that demanding Silicon Valley executives regulate online speech is a terrible idea.”
But there is a way to change incentives so that the most popular communications platforms aren’t controlled by either the tech moguls or
the government. Congress could discourage social media censorship simply by removing privileges enjoyed
by social media platforms.
Section 230 of the 1996 Communications Decency Act grants “interactive computer services,” such as
Twitter, Google, YouTube and Facebook, near total immunity for their
users’ content. They have no liability
resulting from anything that their users tweet or post. This is an extraordinary gift to internet companies that
other industries do not enjoy. Newspapers can be held liable for the content of classified ads, and even a tavern can be liable for the graffiti
scrawled on its bathroom stall.
Congress justified this gift on the
grounds that “the Internet and other
interactive computer services offer a
forum for a true diversity of political
discourse.” But with many of these internet services now restricting political discourse, Congress should condition its largesse: Section 230
immunity should be available only to
internet companies that do not engage in prohibiting viewpoint discrimination against their users. Enabling a
few gigantic internet firms to use
their dominant social-media platforms
to silence views with which they disagree counters the act’s very purpose.
Still others worry that social media
networks do too little to curb obscene, harassing, criminal or violent
posts. Legislators could fix this, too,
by conditioning Section 230 immunity
on the viewpoint-neutral enforcement
of such rules. Laws commonly prevent
private entities from viewpoint-based
discrimination while allowing them to
make reasonable restrictions on
speech. Commercial airlines, for example, may ban passengers who
swear, harass flight attendants or otherwise behave disruptively. They cannot stop people from flying based on
their political opinions, no matter
how offensive they may be. Reforming
Section 230 would allow tech companies to focus on truly harmful content, such as revenge porn and sex
trafficking, while also preventing
them from using it as a pretext for
politically based restrictions.
Social-media companies never
sought to become global speech police, nor have they shown particular
appetite or talent for the job. Google,
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one’s reach. A national unity
government could stop the
killing and enable the kind of
humanitarian and reconstruction effort necessary to
avoid future violence.
• Elsewhere in the region,
America should encourage
political and economic reform. Egyptian President
Abdel Fattah Al Sisi is not
the ideal American ally but
he is preferable to chaos or
extremism in that country.
He has preserved the Israeli
security partnership. But
long-term progress will require respect for the law
and political pluralism.
American aid should be cut
in half until Mr. Sisi establishes meaningful institutional protections for basic
human rights. With strong
Saudi and Emirati support,
the Sisi government will
survive such a cut, but American
pressure can help restrain Egypt’s
decline into authoritarianism.
• Jordan, which has absorbed 1.4
million Syrian refugees into a population of eight million, should become the anchor of a new, multilateral Marshall Plan. That term is
often tossed around casually, but
Jordan’s government is trustworthy
enough to help steward a major inflow of resources. Winding down the
Syrian civil war would ideally create
an opening—and provide an imperative—for historic investment in the
development of the Middle East and
its people. Along with allies in Europe and the Gulf, Washington
should spearhead a reconstruction
program providing jobs to the region’s youth and reducing the appeal
of radical Islamic fundamentalism.
The sum total of a serious U.S.
strategy for the Middle East will require a greater financial investment
by the American people—perhaps as
much as a few billion dollars annually—and modest increases in Central Intelligence Agency and military
involvement, in Syria in particular. It
will not, however, bust the bank or
drag American forces into another
protracted war.
PHIL FOSTER
By Suzanne Maloney
And Michael O’Hanlon
Facebook and Twitter all initially resisted calls for strict speech policies,
and they didn’t care about the content of their platforms until they became dominant. Now they possess
great power, which they do not know
how to wield. While conservatives accuse social networks of political bias,
the mainstream media, European
governments, and left-wing advocacy
groups all demand the platforms enact stricter rules. Reforming Section
230 would remove the social media
outlets from this political tug of war.
More important, it would help restore
a true marketplace of ideas online.
Mr. Candeub is a fellow at the Institute of Public Utilities and a law
professor at Michigan State University. He previously worked at the Federal Communications Commission.
Mr. Epstein is an antitrust attorney
and freelance writer.
60 YEARS OF ADVENTURE
AND DISCOVERY
Ms. Maloney is deputy director
and Mr. O’Hanlon is research director in the foreign policy program at
the Brookings Institution.
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Snap Shares Slide as Loss Triples
Revenue rose 62%,
but growth slowed
and daily users fell
short of expectations
BY GEORGIA WELLS
Snap Inc. shares fell 16% in
after-hours trading as the
company reported its quarterly
loss more than tripled, disappointing Wall Street again as it
failed to add significantly to
the number of people using its
app daily or the amount of
money advertisers are spending to reach those users.
For its third straight quarterly report as a publicly traded
company, Snap fell short of an-
alysts’ revenue forecasts. The
third-quarter results released
late Tuesday marked the latest
stumble by Snap since it went
public in March.
In a conference call with analysts, Chief Executive Evan
Spiegel said Snap would overhaul its signature product, the
Snapchat messaging app, and
acknowledged he misjudged
demand for Spectacles, the
company’s onetime buzzy
video-recording sunglasses.
Snap said it recorded $39.9
million in charges in the quarter, primarily because of excess Spectacles inventory.
The difficulties illustrate the
enormous challenges Snap faces
trying to wrest market share
away from the two companies
that dominate digital advertising, Facebook Inc. and Google
parent Alphabet Inc.
Snap said revenue in the
third quarter rose 62% to $207.9
million. Analysts polled by FactSet had expected $236.9 million
in revenue. The revenue haul
was the most Snap has logged
in a quarter. But it also marked
another three months of decelerating growth for a company
not yet a year removed from its
IPO. In the second quarter,
Snap’s revenue more than doubled to $181.7 million.
Snap added 4.5 million daily
users during the quarter, bumping its total user base to 178
million but representing the
slowest growth since the company started reporting the fig-
ure. Analysts surveyed by FactSet expected Snap would add 8
million new daily users.
“We grew our daily active
users at a lower rate than we
4.5M
Number of daily users added
during the third quarter
would have liked,” Mr. Spiegel
said on the call.
Mr. Spiegel said Snapchat is
taking steps to make it easier
for people to discover content
others are sharing. But he is-
sued a rare note of caution, saying, “we don’t yet know how the
behavior of our community will
change when they begin to use
our updated application.”
Snap conceded it is struggling with a transition from direct ad sales to an auctionbased model, in which
advertisers bid on the amount
they are willing to spend, the
same method used by Facebook
and Google.
Snap’s quarterly loss came to
$443.2 million, or 36 cents a
share, compared with a yearearlier loss of $124.2 million.
After closing at $15.12, Snap’s
shares after hours fell to $12.65.
Heard on the Street: Snap
looks pricey............................... B14
HEARD ON
THE STREET
By Paul J. Davies
The hunt
for yield is
taking Wall
Street and investors into
exotic territory, and that means an appetite for credit assets that
are private, not easily tradable and often complex.
Putting together deals in
what some dub “nonlinear finance” is a growth business
for investment banks’ big
bond-trading arms and is
helping clear unwanted assets
off some balance sheets. However, such private deals, which
aren’t publicly traded and
don’t have public credit ratings, are a challenge for regulators keeping track of the
growth of shadow banking
and understanding whether
such activity is driven by regulation or its avoidance.
The business isn’t new,
but it is heating up as banks
hire specialists and commit
balance-sheet capacity to
feed investor demand. Goldman Sachs Group said in
September that it could double its financing of “bespoke
collateral” by giving its
fixed-income trading arm an
extra $5 billion of balancesheet capacity. This would
bring in at least an extra
$100 million of revenue,
which likely only counts the
net interest income Goldman
would earn on debt it keeps
and not all the other deal
fees involved.
Deutsche Bank is a market leader in this business,
earning roughly €400 million ($464 million) each
quarter from all the financing linked to fixed-income
trading, including nonlinear
trade, while others such as
Credit Suisse Group and
BNP Paribas are more focused on certain products or
regions.
So what is this business?
It starts with lending to private-equity or hedge-fund
clients who want to buy assets that are hard to value,
hard to sell, or low quality.
Such assets can’t be financed
in markets by fixed-income
Please see HEARD page B2
Changing Balance
Investment bank and markets
revenue, by source
Fixed income and
equity financing
Sales, trading, underwriting
and advisory
$200 billion
150
100
50
0
2012 ’13
’14
’15
*First six months
Source: Coalition
THE WALL STREET JOURNAL.
’16 ’17*
STEPHANIE STRASBURG FOR THE WALL STREET JOURNAL
A Thirst
For Returns
Encourages
Risky Trade
A proliferation of cafes in the past five years is starting to hurt business owners. A barista at 21st Street Coffee and Tea in Pittsburgh.
Crunchtime for Coffee Shops
Crowded market loses steam as shakeout looms; specialty brews at the gas pump
BY JULIE JARGON
America’s coffee market is
getting too crowded.
Consumers’ hankering for
caffeine and quality coffee has
fueled a big buildout of cafes
in the past five years, especially in dense urban areas
such as New York, San Francisco and Portland, Ore. There
are now nearly 33,000 coffee
shops in the U.S., including
those run by big chains such
as Starbucks, up 16% from
five years ago, according to
market research firm Mintel.
The boom in coffee shops
is starting to hurt business
owners. Consumers are visiting traditional coffee shops
less often when there are so
many cheaper options. Everyone from McDonald’s
Corp. to gas stations is hawking specialty coffee. Even
grocery stores are expanding
the space devoted to bottled
and canned coffee drinks,
which Mintel says poses a
threat to coffee shops. Traffic growth for large coffee
Caffeine Crash
After years of fast growth, the pace of new U.S. coffee-shop
openings and customer traffic is expected to slow down.
Number of U.S. coffee shops*
2015
Traffic, percentage change
from previous year†
’20
*2017 is an estimate. 2018-21 are forecasts. †All years ending in June.
Sources: Mintel Group (number); NPD Group Inc. (traffic) THE WALL STREET JOURNAL.
chains such as Starbucks is
slowing, while traffic to
small coffee chains and independent shops is declining,
according to NPD Group Inc.
At a Chevron gas station
just north of Los Angeles, a
12-ounce cup of coffee can
be had for $1.49, while a specialty coffee drink at a Starbucks less than a mile away
can cost nearly $5. A 13.7ounce bottle of Dunkin’ Donuts iced coffee costs $2.89
at a nearby grocery store.
The troubles facing the
coffee business are similar to
those plaguing the broader
food-retail and restaurant industries, which have an
oversupply of retail space
amid a proliferation of new
food options. In addition,
coffee-shop visits are less
frequent, with people curtailing mall shopping and as
they work from home or
spend more time in their offices during the workday.
“I just don’t see room for
more coffee shops,” said NPD
analyst Bonnie Riggs.
Coffee-shop owners, executives and industry experts
now warn the market is
headed for a reckoning.
“Retail is crowded and not
everyone will be around several years from now,” said
Dave Burwick, chief executive of Peet’s Coffee.
Dunkin’ Donuts recently
said it would scale back newstore openings as it redesigns its shops to cater to
on-the-go consumers. Starbucks, which accounts for
Please see COFFEE page B2
Big Backers Sue Prominent Startup
BY ROLFE WINKLER
Investors in Outcome
Health on Tuesday sued the
prominent Chicago advertising
startup and its two founders,
claiming fraud and breach of
contract some eight months
after investing nearly $500
million in the company.
Funds managed by an investment unit of Goldman
Sachs Group Inc., Google parent Alphabet Inc., and other
firms alleged the company and
its founders, Rishi Shah and
Shradha Agarwal, misled them
by knowingly providing false
data and financial reports before the firms invested $487.5
million beginning in March.
The investors say they are
entitled to get their money
back and sought to freeze
$225 million of the total that
had been placed in a separate
account to pay the founders a
dividend. “Plaintiffs now hold
securities that may be worthless,” the complaint states.
The suit, filed in New York
State Supreme Court in New
York County, cites a Wall
Street Journal article from
last month that reported how
some Outcome employees had
misled pharmaceutical customers about its advertising
services. Outcome, which
streams advertising to video
screens it places in doctors’
offices, said the funding round
valued the company at $5.5
billion, making it one of the
most valuable U.S. startups.
“This is the latest negotiating ploy misusing the courts in
the interest of enriching Goldman Sachs at the expense of
the company, its employees
and its customers as there is
no merit to the claims,” Sanford Michelman of Michelman
& Robinson, an attorney representing Outcome, said in a
written statement provided by
an Outcome spokesman.
“These funds are earmarked
for operations and repaying
lenders, yet these equity investors are improperly trying
to put themselves in front of
the company’s best interests.”
The Journal article in October cited in the lawsuit reported that Outcome charged
some advertisers for ad placements on more screens than
the startup had installed,
based on information provided
by former employees and advertisers as well as internal
documents and other material.
Some Outcome employees also
provided inflated data to measure how well ads performed,
created documents that inaccurately verified that ads ran
on certain doctors’ screens
and manipulated third-party
analyses showing the effectiveness of the ads, according
to some of these people and
documents.
An Outcome spokesman,
Lanny Davis, told the Journal
last month that Outcome had
Please see SUIT page B2
See more at WSJMarkets.com
Bridgewater
Paid Secret
Settlement
To Female
Employee
BY ROB COPELAND
WESTPORT, Conn.—Bridgewater Associates paid a settlement to a woman who was
pushed out after engaging in a
consensual relationship with
top executive Greg Jensen, and
shortly after it heard from another female employee that Mr.
Jensen had groped her buttocks, according to people familiar with the matter.
Mr. Jensen, 43 years old,
was directly mentored by
Bridgewater founder Ray Dalio,
68, and groomed over two decades to succeed him as leader
of the world’s largest hedge
fund. At the time both incidents
were brought to the company’s
attention roughly three years
ago, Mr. Jensen was co-chief
executive of the firm. He is now
Bridgewater’s co-chief investment officer, helping oversee
around $160 billion in assets
and hundreds of employees.
The billionaire Mr. Dalio was
personally involved in mediating both matters, people familiar with them said. Both
women have since left Bridgewater and are barred by nondisclosure agreements from
discussing their experiences
publicly, the people said.
Mr. Dalio approved a settlement of more than $1 million
for the woman who had a relationship with Mr. Jensen, the
people said.
The woman who complained
of being groped didn’t leave
Bridgewater because of the incident, and wasn’t pushed out,
the people said. She met with
Mr. Dalio and continued her career elsewhere, they said. No
lawyers were involved.
Mr. Jensen said in a statement: “The Wall Street Journal’s accusations of my behavior are inaccurate and salacious.
They are hurtful to my family
and my reputation with those
who don’t know me, so I am
deeply disappointed with their
sense of responsibility.”
After online publication of
this article, Mr. Dalio said in a
statement: “I judge Greg to be a
man of high character and I
would not have tolerated the
pattern of behavior inaccurately described by The Wall
Street Journal.”
Neither incident was previously reported.
A Bridgewater spokesman
said in a statement: “This story
is an uninformed misrepresentation of what actually occurred. While we are prohibited
from speaking to this case, our
track record speaks for itself.
Because of the people, procedures and culture we have in
Please see JENSEN page B2
INSIDE
OWNERSHIP
SQUEEZES
HOME RENTALS
PROPERTY REPORT, B6
YIELDS FALL
AS INVESTORS
SENSE RELIEF
CREDIT MARKETS, B13
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, November 8, 2017
INDEX TO BUSINESSES
American Homes 4 Rent
.....................................B6
Andreessen Horowitz
...................................B12
A.P. Moller-Maersk.....B3
Apple....................A3,B14
Automatic Data Proc . A1
Aviva ........................... B6
B
Bank of New York
Mellon.....................B12
Blue Bottle Coffee......B2
BMW ........................... B3
Bridgewater ................ B1
Broadcom.............A2,B13
Burford Capital...........A1
C
Casper Sleep...............B5
Century Banking.......B12
Citigroup......................B6
CME Group................B13
Credit Suisse Group ... B1
D
Daimler........................B3
Diageo ....................... B14
Dunkin' Donuts...........B1
E
Emerson Collective.....B2
Emerson Electric.........B5
Essex Property Trust..B6
Exxon Mobil................B3
F-G
Fidelity Investments B12
Ghanim Bin Saad Al
Saad Group.............B12
Goldman Sachs....B1,B12
Greystone....................B6
I-J
Quantopian................B12
R
Reliance Comm.........B12
Remy Cointreau........B14
Repsol..........................B3
Rexnord.......................B5
Rockwell Automation.B5
Royal Caribbean..........B5
Royal Dutch Shell.......B7
Tanious, Joe..............B13
Tchilinguirian, Harry...B7
Wace, Ian....................B6
Welch, Spencer...........B7
banks’ balance sheets, but
many are being found by investment bankers, or the
hedge funds and private-equity firms that anchor the
deals.
Investor demand for such
assets is outstripping investment banks’ ability to find
the assets, according to one
banker in the field.
Banks slice the financing
into tranches. The riskiest
equity slice is owned by the
anchor hedge fund or private-equity firm and gets the
biggest payoff if the assets
perform well. The safest
slice pays steady coupons
and gets paid first.
Banks make money from
both interest and fees. They
charge for their structuredcredit specialists who put
the deals together, for selling
some or all of the senior
debt itself, and for derivatives trades, to hedge currency risk, for example. The
banks can choose to keep
some slice of the debt they
create and earn net interest
K-M
Keurig..........................B2
KKR..............................B6
Mallinckrodt..............B14
Marshall Wace............B6
Match Group...............B5
McDonald's..................B1
McSweeney's..............B5
Michelman & Robinson
.....................................B1
N
Nestle..........................B2
News Corp.................B13
Northern Trust..........B12
Norwest Venture
Partners....................B2
Numerai.....................B12
S
Salesforce...................A2
SeaWorld.....................B5
Silk Road Group..........B6
SJEC.............................B4
Skyworks Solutions..B14
Smithfield Foods ........ B4
Snap.....................B1,B14
Snyder's-Lance............B5
Starbucks....................B1
State Street..............B12
Statoil ASA.................B7
Stumptown Coffee.....B2
T
P-Q
Take-Two.....................B5
Total ............................ B3
Toyota Motor..............B3
TripAdvisor................B13
Trump Organization....B6
21st Century Fox......B13
21st Street Coffee ..... B2
Peet's Coffee..............B1
Philadelphia Energy....B3
Point72 Asset...........B12
Priceline .................... B13
Qihoo 360 Tech...........B4
Qualcomm.A2,B1,B4,B13
Volkswagen.................B3
Walt Disney..............B13
Wells Fargo.................B6
WisdomTree Japan...B13
Zynga...........................B5
O
1Malaysia Develop ... B12
Outcome Health..........B1
A-B
H-J-K
Ackman, William........A1
Adams, Todd...............B5
Agarwal, Shradha.......B1
Bryant, Caleb .............. B2
Harris, Marc..............B12
Hooley, Joseph..........B12
Jobs, Laurene Powell . B2
Kaplan, Lindsay...........B5
C-D
L-M
Cohen, Steven A.......B12
Dalio, Ray....................B1
Davis, Lanny ............... B2
DeVore, John...............B5
Driscoll, Brian.............B5
Laing, Diana................B6
Lallmahamood,
Muniruddeen...........B12
Larkin, Jonathan.......B12
Leissner, Tim ............ B12
Low, Jho....................B12
McLaughlin, James.....B2
Michelman, Sanford...B1
F-G
N-O-P
Nuttall, Scott..............B6
O'Hanley, Ron...........B12
Pease, Alexander........B5
HEARD
Continued from the prior page
trading arms in the traditional way that liquid, highquality assets are.
The hot assets right now
include pools of European
bad loans; other private
loans; large property deals,
especially in the U.S.; and
things like infrastructure assets in emerging markets.
Some come from weaker
JENSEN
Continued from the prior page
place, Bridgewater, over the
course of its 43-year history,
has had very few incidents of
any type, handled them
thoughtfully, comprehensively
and fairly, and has had no material adverse judgements.”
Westport,
Conn.-based
Bridgewater has produced investment gains of $49 billion
for clients since 1975, according
to LCH Investments NV.
Bridgewater is known for its
culture of “radical transparency,” which requires most
meetings to be recorded and
openly ranks employees on
their weaknesses. Mr. Dalio has
stated that his self-written
“Principles,” a list of rules for
life and work, constitute a meritocratic management system
he hopes to export to other
companies.
Mr. Jensen joined Bridgewater as an intern in 1996 after
graduating from Dartmouth
College, where he was the president of his fraternity. He later
signed a lifetime noncompetition agreement with Bridgewater, people familiar with the
matter said. He was inducted
into what Bridgewater calls its
“circle of trust,” a group of
roughly one dozen staffers allowed full knowledge of the
firm’s investment process, the
people said. Mr. Jensen is married with three children.
Mr. Jensen also serves on
Bridgewater’s management and
stakeholders committees, the
latter of which Mr. Dalio has
described in an investor letter
as equivalent to the firm’s
Intelligentsia Coffee...B2
Interpublic Group........B6
JAB Holding................B2
JD.com.........................B4
V-W-Z
INDEX TO PEOPLE
Fawcett, John ........... B12
Follette, Clint..............B3
Ford, Duncan...............B6
Googoolye, Yandraduth
...................................B12
Greene, Diane.............A2
BUSINESS & FINANCE
Phengphian Laogumnerd
...................................B12
Pugh, Thomas...........B13
R-S
Rogers, Michael........B12
Salman, Mohammed bin
...................................B13
Saucer, John..............B13
Shaffer, Luke .............. B2
Shah, Rishi..................B1
Slavov, Georgi.............B7
Snyder, Ed.................B14
Spiegel, Evan .............. B1
T-W
board of directors. Between
2011 and 2016, Mr. Jensen
earned $1.7 billion in compensation, according to estimates
from researcher Institutional
Investor’s Alpha.
Several current and former
male and female Bridgewater
employees said they were at
times uncomfortable with Mr.
Jensen’s behavior outside of the
office and at company events.
At an official off-site company
celebration in 2011, Mr. Jensen
hired a stripper with a feathered boa to surprise Mr. Dalio
on the dais in front of an estimated 1,000 guests, according
to people present.
Mr. Jensen has frequently
hosted after-hours celebrations
at his Connecticut home. Former employees said they referred to his pool house as the
“party barn.” In one instance,
Mr. Jensen challenged each employee at a company party attended by hundreds to take a
shot of alcohol with him.
Several current and former
female staff whom Bridgewater
suggested the Journal contact
complimented Mr. Jensen.
“There are really more
women than I can count—myself included—who would say
Greg has been nothing but an
inspiring mentor and deeply invested in their development.”
said Karen Karniol-Tambour, a
top deputy to Mr. Jensen.
At one official company
event, Mr. Jensen began a
monthslong personal relationship with a female employee
who was his junior and in his
line of supervision, people familiar with the matter said.
During the relationship, he offered the employee encouragement and personal help to further her career at Bridgewater,
these people said. After others
at Bridgewater discovered the
relationship between the two,
Mr. Dalio was alerted, people
familiar with the matter said.
Mr. Dalio questioned Mr.
Jensen and the woman together in front of a panel of top
Bridgewater executives, people
familiar said. Bridgewater’s human-resources
department
wasn’t immediately involved,
the people said.
At one point, Mr. Dalio assigned James Comey, Bridgewater’s then-general counsel,
to question employees about
Mr. Jensen’s conduct with subordinates, including his interactions with the female employee, people familiar with
the matter said.
Later, Mr. Dalio told some at
Bridgewater that he couldn’t
determine whether Mr. Jensen
or the female employee were
telling the truth about the relationship, people familiar with
the matter said. Mr. Dalio noted
Mr. Jensen’s overall believability had long been ranked particularly highly in Bridgewater’s
rating metrics, meaning that
his description of some details
of the relationship carried extra
credibility over hers, people familiar with the matter said.
As the investigation continued, Bridgewater put the female employee on a leave of
absence, while Mr. Jensen remained at his post, these people said. At about the same
time, the employee hired the
well-known discrimination attorney Gloria Allred, who spoke
with Mr. Dalio for several
hours, the people said.
Mr. Dalio and Ms. Allred, who
declined to comment, negotiated a settlement of more than
$1 million, the people said. The
exact terms of the settlement
couldn’t be determined. After
agreeing to the settlement, the
employee was escorted out from
her desk, they said.
of typically 2% annually, or
sell it all to insurers, pension
funds or other banks that
want safer senior-secured
debt that pays a juicier yield
than is available in public
markets.
These kinds of deals look
a lot like securitizations, the
process behind mortgagebacked bonds. But private
structured credit like this
business avoids rules drawn
up after the last crisis that
say banks must retain some
exposure in any securitiza-
tion.
According to one European bank executive, banks
can sell almost any kind of
private senior-secured debt
to investors, and his bank is
giving up interest income because investors are willing to
pay more for it.
Industry revenue in this
patch rose by nearly onequarter in 2016 and was
stronger again in the first
half of 2017, according to research firm Coalition, which
calls the business fixed-in-
come nonlinear financing, to
distinguish it from traditional market-based, or linear, financing.
It isn’t easy to spot, but
for some banks this business
is supporting revenue in
hard-pressed fixed-income
divisions.
These hard-to-value assets
can cause losses and spread
fear when markets turn. Regulators need to be sure they
know how much business is
being done and where the
risks are going.
NEIL STODDART
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Greg Jensen at a poker tournament in the Bahamas in early 2013.
COFFEE
SUIT
Continued from the prior page
put three employees on paid
leave and hired the law firm of
former U.S. attorney Dan
Webb “to review allegations
about certain employees’ conduct” that were raised internally and by the Journal. Mr.
Davis said Outcome “has always upheld the highest ethical standards” and has adopted new policies to comply
with customer contracts.
Following the Journal’s article, the investors pressed Mr.
Shah for access to company
data to investigate the claims,
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STEPHANIE STRASBURG FOR THE WALL STREET JOURNAL
Continued from the prior page
nearly 42% of coffee shops in
the U.S., said it isn’t planning to slow the pace of
new-store openings, but
cited the challenging retail
environment as it reduced
its long-term sales and profit
growth outlook last week.
The number of coffee
shops in the U.S. is forecast
to grow just over 2% this
year, the slowest growth in
six years. In coming years,
Mintel said, the growth rate
will fall even lower.
Large competitors have
begun to swallow up smaller
ones, and more consolidation
is expected.
JAB Holding Co., a privately held business group in
Europe, has been on a coffeebuying spree in the U.S. It
owns Keurig Green Mountain and Peet’s Coffee, which
recently acquired a majority
stake in Intelligentsia Coffee
& Tea and Stumptown Coffee Roasters. Nestlé SA in
September bought a majority
stake in Blue Bottle Coffee.
Small coffee shop owners
who got into what was once a
high-margin business are
vulnerable. Many have found
rising costs of real estate and
labor to be prohibitive, and
are starting to close.
“Real-estate costs are at a
peak and the industry is getting saturated,” Mr. Burwick
said, explaining that retailers
have to be careful about
where they open new shops.
Alexis and Luke Shaffer, a
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Luke and Alexis Shaffer of Pittsburgh compete against larger chains that can pay more rent for good locations.
married couple who opened
21st Street Coffee and Tea
in Pittsburgh’s Strip District
11 years ago, are trying to
secure a new location because their landlord raised
the rent beyond what they
could afford. They have a
second shop downtown.
“Bigger coffee chains can
pay more in rent and can
have attorneys negotiate
leases and get better locations,” Ms. Shaffer said.
The couple say they are
turning a profit still and that
sales are stable, but that it is
a tough business made harder
by increasing competition.
Larger chains have a big
advantage in that they can
more easily cater to consumers’ increasing demand for
convenience with sophisti-
cated mobile apps, drivethrough lanes and bottled
coffee drinks.
“People are getting more
and more impatient and lazy,
you could argue,” said
Dunkin’ Brands Group Inc.
Chief Executive Nigel Travis,
who predicts there will be “a
shakeout among smaller
chains.”
Caleb Bryant, senior foodservice analyst at Mintel,
said sales growth for many
coffee chains or shops will
have to come from an existing base of coffee drinkers
shelling out more money for
evermore complicated and
expensive drinks.
Starbucks and Dunkin’ are
appealing to more affluent
consumers who can pay
more for specialty drinks
like nitrogen-infused cold
brew and vanilla chai. A 16ounce coconut milk mocha
Macchiato at Starbucks, for
example, costs $4.95 in the
Los Angeles area.
Stumptown, Blue Bottle
and Intelligentsia are offering subscription services,
selling their beans to hotels
and restaurants and getting
packaged products into grocery stores as a way to supplement their cafe business.
While all three companies
say there is room to build
more shops, they acknowledge they will take a measured approach to expansion.
James McLaughlin, CEO of
Intelligentsia, which has 11
stores now, said: “For us,
opening a couple stores in a
year is a big deal.”
according to the lawsuit. The
investors “discovered manipulations consistent with those
reported by The Wall Street
Journal,” the lawsuit alleges. The founders “either
knew of, or recklessly disregarded” the misleading information, according to the suit.
As part of the funding round,
funds run by Goldman’s asset
management arm invested $100
million in client capital in Outcome. Alphabet’s CapitalG unit,
Norwest Venture Partners and
Emerson Collective Investments, the investment arm of
Laurene Powell Jobs, each invested $50 million, according to
the lawsuit.
Representatives for Gold-
man Sachs and Emerson declined to comment. A representative for Google didn’t
immediately respond to a request for comment.
Investors claim they have
been unable to verify that the
$225 million set aside for the
founders remains in the subsidiary where it was allocated.
The lawsuit alleges that
shortly after the Journal’s
story, Mr. Shah, the CEO, took
steps to move funds out of the
subsidiary. The investors want
the funds frozen so they can
be used to pay any future
judgments.
In a joint statement Tuesday, Mr. Shah and Mr. Agarwal
said: “We had the right to take
out this money, and we did not.
Instead, we decided to make
the funds available for the
company’s continued growth
towards its mission.”
The $225 million pool of
capital would be an unusually
large amount for startup founders to take out of their company. Most founders don’t cash
out such large amounts until
they sell their companies or
stage an initial public offering.
Any efforts by equity investors to recoup the money they
put into the company could be
impeded by Outcome Health’s
creditors who have lent the
company around $300 million
and are owed back their
money first.
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B3
NY
BUSINESS NEWS
Toyota Improves Profit Forecast
Auto maker still faces
obstacles in U.S. from
rising sales incentives
and vehicle shortages
BY SEAN MCLAIN
BRUSSELS—The European
Union is set to propose a 30%
cut in carbon-dioxide emissions from cars and vans in the
decade through 2030, an EU
official said.
The move sets the stage for
tough negotiations with auto
makers fighting for lower targets and environmentalists
pushing for greater reductions.
A
final
decision
is
due Wednesday after the EU’s
executive arm, the European
Commission, holds its weekly
cabinet meeting.
The proposal is expected to
include a midterm target of 15%
CO2 emissions reductions by
2025, an effort to push European auto makers to quickly
shift their production, the EU
official said. Other people familiar with the deliberations confirmed elements of the proposal.
To promote the transition
toward zero-emission vehicles,
the EU is also primed to propose a benchmark for zeroemission electric vehicles and
low-emission vehicles, such as
plug-in hybrids, that would allow auto makers to count any
additional production as carbon credits, the official said.
A commission spokeswoman
declined to comment on the
proposal, saying the EU executive’s top officials would finalize their decision Wednesday.
The EU is tightening its CO2
standards for cars and vans as
part of the bloc’s push to meet
its commitments under the
Paris Agreement on climate
change to reduce greenhouse
gas emissions by 40% by 2030.
Brussels’s new regulatory
regime also follows a 2015 diesel-emissions cheating scandal
that tainted the reputation of
European auto makers—with
Volkswagen AG facing settlements of potentially more than
$20 billion in the U.S.
TOKYO—Toyota
Motor
Corp. on Tuesday raised its
profit projections for the year
ending March 31, saying it
could boost sales and rein in
costs, but the U.S. market continues to weigh on earnings.
The company said its operating margin in North America
dwindled to about 2% in the
quarter ended Sept. 30 as rising incentives on passenger
cars offset sales of its trucks
and sport-utility vehicles, particularly the RAV4 crossover.
The RAV4 is the best-selling
vehicle in the U.S. without a
truck bed, and it has helped
propel Toyota’s U.S. sales to
within a hair’s breadth of Ford
Motor Co., the second-largest
auto maker in the U.S. in
terms of sales.
But Toyota faces a shortage
of RAV4s, its bigger cousin,
the Highlander, and the Tacoma pickup truck—the lingering effects of a self-imposed
freeze on plant construction
that was lifted in 2015.
“Until recently, there was a
bottleneck in SUV production,”
said Osamu Nagata, Toyota’s
chief financial officer. “In the
future, we will expand capacity to deliver cars to customers in a timely fashion.”
Toyota has relied on passenger-car sales to drive volume—a segment of the market
being pummeled as U.S. car
buyers increasingly prefer
trucks and SUVs as fuel prices
stay low. This reliance helps
explain why Toyota took a hit
in operating income in North
America for the quarter ended
in September, despite relatively flat sales.
The company reported that
operating income for the region declined to ¥55.3 billion
($486.3 million) for the period
from ¥139.8 billion a year earlier.
RAV4 crossovers under assembly in St. Petersburg, Russia, last year. A weakening yen is expected to boost Toyota’s full-year results.
Car makers, Toyota included, are forced to increase
incentives on passenger cars
to maintain volume, eating
into margins on the vehicles.
Toyota offered an average of
$3,291 in incentives on its
cars, compared with $2,063
for its light trucks, in the first
10 months of the year, according to analysis by Jefferies.
The other issue that
weighed on Toyota’s operating
profit was a spike in imports
from Japan to compensate for
a temporary decrease in North
American production of about
88,000 units during the September quarter.
The company said this was
largely because of preparations to produce Toyota’s latest vehicles, including the new
Camry midsize sedan. Toyota
hopes to solve its supply problems in the near future: A new
plant for Tacoma trucks in
Mexico is set to open in 2019.
The company is also scouting for a new production site
in the U.S. with partner Mazda
Marine-Fuel Pollution Rule
Poised to Disrupt Refineries
BY CHRISTOPHER M. MATTHEWS
AND CHRISTOPHER ALESSI
The refining industry is facing its biggest disruption in
years from a looming international air-pollution regulation
aimed at slashing the amount
of sulfur in marine fuel for
oceangoing ships.
The regulation doesn’t go
into effect until 2020, but its
reverberations are already being felt. Analysts predict it
will widen the gap between
the refining world’s winners
and losers, making some
richer while pushing others to
the brink.
Some larger companies, including Exxon Mobil Corp.,
Total SA and Repsol SA have
invested billions in recent
years to upgrade refineries,
which will allow them to produce more lower-sulfur fuel
and other products. They say
they are prepared for the regulations, which are set by the
International Maritime Organization and meant to reduce
emissions that health officials
blame for respiratory and
heart diseases.
Some smaller companies,
including Philadelphia Energy
Solutions, the largest refinery
on the U.S. East Coast, haven’t
yet begun to make the costly
improvements.
“It’s the biggest change to
hit the industry in a while,”
said Clint Follette of Boston
Consulting Group. “At this
point, it’s too late for most
companies to put in those
kinds of investments before
2020.”
The International Maritime
Organization, the United Nations’s shipping regulator, last
year mandated that oceangoing vessels cut the sulfur content in their fuel by more than
85% starting in 2020. The
world’s 50,000 merchant ships
can either undergo costly retrofits to their exhaust systems
or use cleaner fuels such as
low-sulfur diesel.
Most large ships now use
what is known as bunker fuel,
a thick, sulfurous type of fuel
that is often composed of residual oils, or the leftovers af-
Maersk Posts Loss
After Cyberattack
A.P. Moeller-Maersk A/S
booked a quarterly loss, hurt
by a recent cyberattack and an
impairment charge on its offshore oil-exploration unit, but
executives predicted a stronger
performance as a shipping-industry recovery takes hold.
The Danish shipping and oil
conglomerate posted a thirdquarter net loss of $1.56 billion,
compared with a profit of
$429 million a year earlier.
Revenue rose 14% to $8.06 billion from $7.07 billion.
Maersk shares in Copenhagen fell more than 6%.
Sea Change
An air-pollution rule starting in
2020 is expected to upend the
markets for fuel used by
ocean-going ships.
Demand (mllion barrels a day)
Marine fuel (low-sulfur)
Current
1.4
2.6
2020
High-sulfur fuel
3.3
1.5
Price (dollars a barrel)
Diesel (low-sulfur fuel)*
$63
Current
$85
2020
High-sulfur fuel
$43
$25
*Proxy for marine fuel which is not priced
Source: Citi
THE WALL STREET JOURNAL.
ter diesel and gasoline have
been separated from crude oil
through refining.
Shipping companies are expected to opt for cleaner fuels,
which will shrink the market
for bunker fuel. Shippers consume as much as 4 million
barrels a day of bunker fuel,
The bottom line reflected
the effects of a $1.75 billion
impairment in Maersk Drilling
and a $250 million to $300
million hit from a cyberattack
in June that left the company’s
shipping unit reeling for weeks.
Maersk plans to spin off the
drilling unit, which operates oil
and natural-gas rigs mainly in
the North Sea. Over the past
year, the company has been
paring back its energy businesses, including its Maersk Oil
and Maersk Tanker divisions.
The cyberattack brought
down Maersk’s computer systems, with malware infecting
networks used by its container
businesses.
—Costas Paris
and Ian Walker
and the regulation could cut
demand by as much as half,
analysts say.
That is bad news for simpler refineries in Europe and
the U.S. East Coast
that
aren’t able to process the
dregs of the barrel into more
valuable fuels and which will
be stuck with a glut of highsulfur fuel leftovers they will
be forced to sell at huge discount, Mr. Follette said.
It is good news for the U.S.
Gulf Coast, already the moneymaking center of the American
refining industry. Many refineries there are more complex,
meaning that they have technology that can take heavy
and sour crude and turn it
into more profitable, light
products, in addition to bunker fuel.
Companies including ExxonMobil, Chevron Corp., Marathon Petroleum Corp. and
Valero Energy Corp. have
some of the nation’s most
complex refineries, according
to Stratas Advisors’ global refinery rankings.
In addition to its existing
assets on the Gulf, Exxon, in
anticipation of the new rules,
is investing more than $1 billion in new equipment that
will be able to produce lowersulfur fuels at a refinery in
Antwerp, Belgium.
BMW’s Results Put
More Pressure on
Car Maker’s Shares
BMW AG reported weak results for its latest quarter on
Tuesday even as the German
luxury-car maker raised its fullyear earnings outlook.
BMW, which is in a tight
race for global leadership of the
premium-car market with
Daimler AG-owned MercedesBenz and Volkswagen AG’s
Audi luxury unit, said net income for the third quarter fell
2.8% from a year earlier to
€1.76 billion ($2.04 billion),
while revenue edged up 0.3% to
€23.4 billion.
The Munich-based auto
maker said sales growth for its
premium sedans and sport-utility vehicles slowed, while investment in electric vehicles
and new technology, such as
self-driving features and connecting cars to the internet,
weighed on profits.
Overall BMW-brand sales
rose 1.2% to 590,415 vehicles in
the quarter.
The third-quarter performance, which was below ana-
lysts’ consensus forecasts,
added to negative investor sentiment that has dogged BMW
shares this year. The stock fell
2.8% to €87.42 in Frankfurt
trading on Tuesday, trailing the
broader automotive index.
Upgrading its full-year outlook, BMW said it now expects
“solid,” rather than “slight,”
earnings growth for the entire
group. But it downgraded its
outlook for its core automotive
business to slight growth, keeping its overall profit-margin target in a range of 8% to 10%.
—William Boston
and Max Bernhard
Motor Corp. that it aims to
bring online in 2021.
President Donald Trump
praised the companies during
his recent visit to Tokyo.
“They’re going to invest $1.6
billion in building a new manufacturing plant, which will
create as many as 4,000 new
jobs in the United States.
Thank you,” he said.
Toyota on Tuesday said it
now expects to earn ¥1.95 trillion for the year ending in
March, compared with net
profit of ¥1.83 trillion last fiscal year—a 6.5% increase. The
company had earlier projected
a drop in net profit of 4.4%.
The increase is driven by
stronger projected sales for
nearly all of the company’s
market, and by a fortunate
turn in foreign-exchange rates.
A weaker-than-expected yen is
expected to boost operating
income by about ¥175 billion.
A weak yen helps boost the
value of profits when they are
repatriated.
alexa
OUT TODAY
TRUE COLORS
GLAM-GIRL LOOKS & DOWN-THE-AISLE STYLE
3NYP101
BY EMRE PEKER
KOVALEV PETER/TASS/ZUMA PRESS
EU Plans
30% Cut
In Auto
Emissions
FREE INSIDE THE
B4 | Wednesday, November 8, 2017
THE WALL STREET JOURNAL.
NY
TECHNOLOGY
WSJ.com/Tech
Waymo Hits the Road in Phoenix
Fleet of robot vans
sets out without
humans at the wheel;
taxi service envisioned
Waymo LLC is taking a historic step in the development
of fully driverless cars by unleashing the first fleet of robot
vehicles on public roads without humans behind the wheel.
The self-driving car division
of Google parent Alphabet
Inc. on Tuesday said it quietly
began testing the robot vans
on Oct. 19 in the Phoenix
metro area, and shared its vision of deploying the technology to the public through a
taxi service.
The outfitted Chrysler Pacifica minivans still have employees in the car, but they are
no longer at the wheel, instead
in the back seat where they
can only push a button to pull
over the vehicle. Waymo said
it plans to let passengers sit in
the back in coming months,
possibly without an employee
in the car.
The deployment represents
a milepost for the company,
whose initial steps eight years
ago ignited a race among auto
makers, including General Motors Co. and Ford Motor Co.,
and tech companies, such as
Apple Inc. and Uber Technologies Inc., to become the first to
put a commercial fleet of robot
vehicles on public roadways.
All of these companies have
been conducting tests on public roads but with people behind the wheel ready to take
control if the cars’ computer
gets stuck or goes haywire.
Waymo Chief Executive
John Krafcik, an automotive
industry veteran, addressed
the milestone Tuesday during
a speech at a tech conference
in Lisbon, announcing that “in
the next few months” members of the public will get rides
in the fully self-driving vehi-
BY GEORGIA WELLS
WAYMO
BY TIM HIGGINS
AND JACK NICAS
Images from a Waymo video of a road test drive in Phoenix. The self-driving unit of Google parent Alphabet began the tests last month.
cles under the company’s Early
Rider program. Users will summon the vehicle through a
smartphone app similar to
how vehicles are requested
through Uber.
“People will get to use our
fleet of on-demand vehicles, to
do anything from commute to
work, get home from a night
out, or run errands,” he said in
remarks released by Waymo in
advance of his speech.
The rise of ride-hailing services and advancements in autonomous technology have
threatened the century-old
car-making industry. The Boston Consulting Group has estimated that one-quarter of
miles driven in the U.S. by
2030 could be through shared
self-driving vehicles.
The technology, however,
still faces a series of obstacles
to widespread adoption. In the
U.S., regulations vary widely
by state and are murky at the
federal level. It isn’t clear the
public is willing to surrender
control to a computer, and unexpected safety issues could
arise in tricky environments,
such as snow.
Mr. Krafcik, in his speech,
described the company’s vision
for a future in which cars are
more often shared than owned
and are designed differently
than vehicles driven by people.
The Alphabet unit is
also testing how best
to pick up and drop
off taxi passengers.
“A small fleet of fully selfdriving cars could serve an entire community,” Mr. Krafcik
said. These vehicles could be
designed for specific tasks.
“One for napping; a personal
dining room; a mobile office;
or a vehicle just for when moving into your new place,” he
said. “You can even have that
eight-seater SUV for your
weekend trips. You could take
these vehicles for one ride, for
a day, for a week, or even longer.”
The new rides are a major
test for Waymo’s technology,
which has proved to be largely
error-free in public testing in
its eight years. The company’s
vehicles have traveled more
than 3.5 million miles on public roads, and only one has
been reported as causing a
crash—a vehicle traveling at
two miles an hour hit the side
of a bus in California last year.
Now Waymo will be able to see
how ordinary consumers interact with robot taxis.
The cars no longer need
only to get from A to B; they
must function fully as a taxi.
For instance, Waymo has
touted its vans’ automatic sliding doors, meaning the taxi
won’t be immobilized by a passenger forgetting to shut a
door.
Waymo is also testing how
best to pick up and drop off
passengers.
Google
was
awarded a patent in July for a
system that enables self-driving vehicles to find pickup and
drop-off spots. Images in the
patent, which hasn’t been previously reported, depict a
smartphone app that enables a
rider to choose a pickup point,
and then show the car analyzing the area for a safe spot to
stop. One image shows the
smartphone app telling the
rider that the car “could not
find a safe place to stop. Circling to try again.”
Initially, the driverless vans
will be confined to a small
area of metro Phoenix, with
the goal of expanding to a
roughly 100-square-mile area
already being tested with humans at the wheel and eventually to the entire metro area.
The company declined to specify how many robot vans
would be deployed without a
human driver.
Qihoo, Once on NYSE, Seeks Listing at Home
reverse merger.
SJEC’s shares rose 10% on
Tuesday after having been
suspended since the summer
because of what it had called a
“potential major asset restructuring.”
China’s stock-market regulator clamped down on backdoor listings in mid-2016 as
concerns rose over rampant
speculation in small-cap
stocks viewed as potential vehicles for such deals.
Such listings have offered
overseas-traded Chinese companies a way to return home
ADVERTISEMENT
Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
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Find Your
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Opportunities
Every Wednesday
To place your ad,
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© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
while bypassing the country’s
often cumbersome process for
initial public offerings. More
than 500 companies are currently waiting for regulatory
approval of IPOs in mainland
China.
Market participants in
China are closely watching
the regulatory process for Qihoo’s plan to gauge authorities’ willingness to allow such
deals. Late last week, the
China Securities Regulatory
Commission said it would
support any such transactions
involving “high-quality” over-
seas-listed Chinese companies
whose businesses are aligned
with the national strategic interest and that own core technologies. The regulator hasn’t
yet approved Qihoo’s proposal.
Qihoo is one of several
mainland Chinese companies,
many in the technology sector,
that have been taken private
in the past couple of years after trading in overseas markets such as New York and
Hong Kong. By eventually relisting at home, these companies hope to benefit from the
support of local investors
more familiar with their operations in a market where short
selling is still heavily restricted.
If it succeeds in relisting,
Qihoo could become a behemoth on Shanghai’s exchange
with a market value of up to
$45 billion, said Deng Wenyuan, an analyst at Soochow
Securities. The company,
which specializes in antivirus
software, generated 1.9 billion
yuan ($286.4 million) in earnings last year.
—Yifan Xie
Love it or hate it, Twitter’s
tweets can now extend to 280
characters, twice the prior
limit which maxed out at the
length of this sentence.
Twitter Inc. said users in
most countries on Tuesday
will now be able to express
their thoughts with double the
140 characters that defined
the social-media service for
more than a decade. The new
limit means that tweets at the
longest will look like this 280character paragraph.
The company had been
testing the limit with a small
amount of users since September, after observing that
the 140-character limit was a
major cause of frustration for
people tweeting in English.
The change in tweet length
is significant for a company
that has long shied away from
making bold changes to its
product, let alone messing
with a signature feature. The
move hints at how Twitter’s
product team is moving more
quickly at testing features and
rolling them out as the company tries to retain and add
more users.
Twitter said that historically, 9% of tweets in English
hit the 140-character limit, often resulting in time spent editing and sometimes abandoning tweets.
But even as it gave users
more characters in its test,
Twitter hoped tweets wouldn’t
largely grow longer, slowing
down the speed of the service.
“Our goal was to make this
possible while ensuring we
keep the speed and brevity
that makes Twitter, Twitter,”
Twitter product manager Aliza
Rosen said in a statement.
During the first few days of
the test, many people tweeted
the full 280 characters, but
soon after behavior normalized,
according to Ms. Rosen. “We
saw when people needed to use
more than 140 characters, they
tweeted more easily and more
often,” Ms. Rosen said.
The 140-character limit
dates back more than a decade
to when people sent tweets via
SMS messages. Text messages
at the time were limited to 160
characters, and Twitter decided to save 20 characters for
usernames.
Japanese, Korean and Chinese users will continue to
have the 140-character limit,
because the more condensed
nature of those languages has
meant users haven’t struggled
as much to fit their thoughts
in 140 characters, Twitter said.
China’s JD.com to Import U.S. Beef
BY LIZA LIN
BEIJING—Chinese e-commerce company JD.com plans
to import $2 billion worth of
U.S. beef and other food products, a person familiar with
the matter said, in one of
number of agreements tied to
President Donald Trump’s
China summit.
Due to be signed Wednesday, the deal calls for JD to
spend about $1.2 billion over
three years on beef from the
Montana Stockgrowers Association and pork from U.S.based
and
China-owned
Smithfield Foods Inc., the
person said. The rest of the
money, he said, will go to purchase other U.S. agricultural
goods.
A range of agreements are
due to be announced Wednesday and Thursday as Mr.
Trump tries to use his China
summit to show his administration is working to reduce a
trade deficit with China that
reached $347 billion last year.
Atop his priority list are
deals like the one with
JD.com that boost U.S. agriculture and manufacturing,
according to officials and
trade groups involved in
planning the trip.
China agreed in May to resume imports of U.S. beef, removing a long-running irritant in trade relations: a
nearly 14-year ban on most
U.S. beef imports that had
started over concerns about
“mad cow” disease in American herds. U.S. ranchers have
suffered lower prices in re-
GETTY IMAGES
SHANGHAI—Chinese security-software company Qihoo
360 Technology Co., formerly
traded on the New York Stock
Exchange, is planning a domestic listing through a $7.6 billion
deal that could unleash a wave
of similar homecomings.
Qihoo 360 is one of the biggest Chinese companies to
seek a local relisting after having traded abroad. It intends
to conduct a so-called backdoor listing by combining with
a smaller company—Shanghailisted elevator maker SJEC
Corp.—in what is known as a
Limit on
Tweets:
Now 280
Characters
Cattle await their fate at auction in Eighty Four, Pa. China ended a nearly 14-year ban on U.S. beef
imports this year. Several agreements are set to be announced as President Trump visits China.
cent years due to a buildup in
supply, and China is an attractive market, estimated to
have imported $2.6 billion
worth of beef last year, according to the North Ameri-
can Meat Institute.
Beijing-based JD has targeted China’s expanding middle class, with its demand for
higher-quality imported food.
The company had more than
25% of China’s business-toconsumer e-commerce market
in the third quarter, behind
market leader Alibaba Group
Holding, according to industry
researcher Analysys Ltd.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B5
BUSINESS NEWS
BY JACK MARSHALL
Mattress brand Casper is
launching a print magazine
and shuttering Van Winkle’s,
the sleep-focused online publication it launched in 2015.
The company said its new
magazine, titled Woolly, will
be published multiple times a
year and focus on themes including comfort, wellness and
modern life. It will be bundled
free with some Casper products and available for $12 an
issue from Casper’s retail
stores and website.
The first issue of
Casper’s magazine,
Woolly, includes a
history of snoring.
Companies have flocked to
so-called content marketing in
recent years in an attempt to
align their brands with certain
topics and issues without relying on straight-forward advertising. The tactic has become
prevalent online, but some
companies, such as Airbnb,
have since taken the approach
offline with their own branded
print products.
But according to Casper,
Woolly shouldn’t be viewed as
marketing designed simply to
drive mattress sales. Rather, it
says it wants to use it as a vehicle to link the company to
subjects it “believes in.”
“This isn’t traditional content marketing; there are no
ads for Casper,” said Lindsay
Kaplan, Casper’s vice president of communications and
brand engagement. “It’s not
about building a revenue
stream either. It’s really about
owning the conversation
around wellness and health.”
Casper has hired nonprofit
publishing company McSweeney’s to help produce the
magazine, which will be
headed up by former New
York Post editor John DeVore.
(The New York Post is owned
by News Corp, which also
owns The Wall Street Journal.)
The launch of Woolly marks
somewhat of a pivot for Casper’s media efforts from digital to print, a move that bucks
recent media trends. In 2015 it
hired four veteran journalists
and launched a website called
Van Winkle’s with the goal of
selling ads and building a
stand-alone media property
dedicated to all things sleep.
The site failed to gain significant traction with readers,
however, and will cease publication to make way for Woolly.
Van Winkle’s one remaining
editorial staffer will now work
on Woolly instead.
Woolly plans to focus on a
broader range of topics than
just sleep alone—topics people
might enjoy reading about
when, for example, they’re lying
on their Casper mattress. The
first issue includes a “love letter to comfort pants,” confessions from your yoga instructor,
a nonchronological history of
snoring and a coloring book.
“When people buy a Casper,
they cover it up with sheets,
so there’s something special
for us knowing this will remain on someone’s nightstand
and remind people to get in
bed, relax, unwind and get
comfortable,” Ms. Kaplan said.
Billed as a “quarterly,” Casper said Woolly won’t stick to
a specific publication schedule. The first issue, which is
96 pages, is available now.
MIKE BLAKE/REUTERS
Mattress
Maker Reads
You to Sleep
SeaWorld Attendance Dives, but Marketing Shift Shows Promise
SeaWorld Entertainment Inc.
reported the largest quarterly attendance decline in at least four
years, but the company said early
results from an advertising blitz
to repair its image are promising.
SeaWorld parks attendance
fell by more than 730,000 from
a year ago to roughly 7.6 million
in the company’s third quarter.
The marine-park operator has
struggled to attract visitors
since a 2013 documentary,
“Blackfish,” stirred up concerns
about its treatment of whales
and orcas. Though SeaWorld has
ended its breeding program, animal-rights activists continue to
call for SeaWorld to release its
remaining stock.
SeaWorld said attendance declined because it spent less on
marketing designed to improve
customers’ perception of the
brand. The company said park
closures stemming from Hurricanes Irma and Harvey hurt attendance to a lesser extent.
In the year-earlier quarter, attendance was relatively flat. Last
quarter, attendance dropped by
353,000 people.
The company said it has already changed course on marketing and last month softlaunched “From Park to Planet,”
a new video campaign that connects the company’s operations
to animal-protection efforts.
Chief Executive Joel Manby
told analysts on an earnings call
Tuesday that based on tests in
the San Diego area, people who
watch “From Park to Planet” and
see a SeaWorld advertisement
are six times more likely to buy
a ticket than if they just see an
ad. The video has also been
rolled out in Los Angeles, but
plans for the full campaign haven’t been completed.
Mr. Manby said the company
is confident it can increase attendance in 2018, especially at
its crucial Orlando, Fla., and San
Diego parks. (Above, an octopus
is observed in San Diego.)
SeaWorld shares rose 1.5% in
Tuesday trading, despite the
company lowering the top end of
its full-year earnings guidance.
Shares closed at a record low
Monday and are down 41% this
year.
—Cara Lombardo
BUSINESS WATCH
ROCKWELL AUTOMATION
Emerson CEO
Talks Up Offer
Emerson Electric Co. CEO
David Farr said he hoped Rockwell Automation Corp. would
reconsider Emerson’s offer of
$215 per share for the factory
automation software company.
He gave no indication that
Emerson is willing to raise its
offer. “We will not extend this
proposal indefinitely,” Mr. Farr
told analysts during a conference call. “We will remain disciplined in respect to price.”
Rockwell turned down two offers in recent months from Emerson, which is interested in building
out its automation unit after slimming down its business portfolio
in recent years. Mr. Farr called a
combination of the two companies “highly compelling” and described Rockwell as “a very good
company and a company that
we’ve always looked up to.”
—Bob Tita
ROYAL CARIBBEAN CRUISES
Earnings Strong
Despite Storms
Royal Caribbean Cruises Ltd.
beat forecasts with what it called
record third-quarter results of
$3.49 a share, up from $3.21 a
year earlier and beating analysts’
expectations of $3.41.
The profit—at $752.8 million
from $693.3 million a year earlier—reflects around $55 million in
lost revenue from the storms that
hit many U.S. and Caribbean destinations this summer.
The cruise sector enjoyed a
strong showing in an otherwise
depressed shipping industry with
record numbers of passengers
from the U.S., Asia and Europe
taking cruises and just about
enough ships to meet demand.
The company said adjusted
earnings per share for the year
will be between $7.35 and $7.40.
—Costas Paris
TAKE-TWO INTERACTIVE
Game Maker
Reports a Loss
Take-Two Interactive Software Inc. said fiscal second-quarter revenue rose 5.6% to $443.6
million under generally accepted
accounting principles, while profit
tumbled to a loss of $2.7 million,
or 3 cents a share, compared with
a profit of $36.4 million, or 39
cents a share, a year ago.
Spending on virtual currency
and other add-on content grew
66% and accounted for 48% of
revenue, while overall digital revenue—which includes add-ons plus
full-game downloads—rose 31% to
$302.9 million, Take-Two said.
The results were driven mainly
by “NBA 2K17,” the company’s
biggest release of the quarter, and
older hits such as “Grand Theft
Auto Online,” Take-Two said.
—Sarah E. Needleman
ZYNGA
‘Words With Friends’
Helps Drive Business
Zynga says third-quarter revenue climbed 23% from a year ago
to $224.6 million, while per-shareearnings were 2 cents, compared
with a loss of 5 cents.
Bookings came in at $213.5
million, exceeding guidance, but
shy of analysts’ expectations.
Earnings before interest, depreciation and amortization soared to
$44.6 million from $3.6 million.
Zynga said the results were
driven mainly by “Zynga Poker,”
“Words With Friends” and “CSR2.”
Zynga has shifting focus in recent years toward games for
smartphones and tablets, and
away from its roots in desktop
gaming.
—Sarah E. Needleman
specialized dating platforms—had
resulted in paid user and revenue
declines for that unit.
Match said paid member
count at the affinity sites, which
include “Black People Meet” and
the Mormon community-focused
“LDS Planet,” would continue to
see paid membership declines
but at slower rates.
The company also plans to
maintain disciplined marketing
spending.
Shares gained 6.9% in postmarket trading as the company
saw paid membership growth
from other brands, including
Tinder.
—Austen Hufford
SNYDER’S-LANCE
Moving Nut Plant
Proves Difficult
The CEO of Snyder’s-Lance,
Brian Driscoll, said in the company’s third-quarter earnings call
that moving a plant for its Emerald nut brand from Stockton, Calif.,
to Charlotte, N.C., “has been more
challenging than we expected,”
and that there have been servicelevel disruptions.
Finance chief Alexander Pease
said manufacturing costs were
above normal from “ramping up”
the plant’s production capacity.
—Allison Prang
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THE WALL STREET JOURNAL.
B6 | Wednesday, November 8, 2017
THE PROPERTY REPORT
Home Rentals Lose Some Mojo
Millennial buyers are
on the rise, dulling the
allure of a once-hot
real-estate segment
Rising homeownership is
adding to the jitters in the
residential rental market,
which has slumped recently
after a long stretch near the
top of the commercial real-estate industry.
For most of the current
economic expansion, declining
ownership rates have enabled
landlords of apartments and
single-family homes to raise
rents far faster than the pace
of inflation. Demand has been
fueled by the millions of people who haven’t had the
money, credit or desire to
pursue the traditional American dream.
But amid a hot housing
market, the homeownership
rate is now rising, in part because millennials are reaching
the age when they are forming
families and settling down.
The Census Bureau last
week reported that ownership
increased to 63.9% in the third
quarter, the highest level since
2014. The rate was up from
63.7% in the second quarter
and 63.5% a year earlier. It remains below the 69% measured at the peak of the housing bubble a decade ago.
Still, the recent trend is
causing analysts and investors
to wonder whether the rental
market’s good times are coming to an end. Investors
pumped tens of billions of dollars into the sector during the
economic recovery, building
and buying apartment complexes and amassing large
portfolios of single-family
homes.
One early warning sign
came last week, when American Homes 4 Rent, which
JOHN TAGGART/BLOOMBERG NEWS
BY PETER GRANT
AND LAURA KUSISTO
A New York apartment building under construction. Supply of rental units has surged lately.
owns more than 50,000 singlefamily properties across 22
states, reported disappointing
revenue growth for the third
quarter. Analysts will be
closely watching earnings from
two other big companies with
similar portfolios. Invitation
Homes Inc. and Starwood
Waypoint
Homes,
which
agreed in August to merge, are
scheduled to report results on
Wednesday.
“Up to now, there really
hasn’t been a chink in the armor of rent growth,” said John
Pawlowski, an analyst with
Green Street Advisors.
To be sure, multifamily investors aren’t headed for the
door. The homeownership rate
is still well below the historic
norm of 65%, and growth
could be slowed by such forces
as rising interest rates and last
week’s tax-code overhaul proposed by House Republicans.
“We believe our country’s
cumulative undersupply of
housing stock, along with
shifting preferences towards
rentership provides a favorable
landscape for single-family
Buildup
Multifamily housing units
under construction
Recessions
600,000
400,000
200,000
0
2000
’10
Source: U.S. Census Bureau
THE WALL STREET JOURNAL.
rentals into the future,” said
Diana Laing, chief financial officer of American Homes 4
Rent.
Still, the rise in homeownership comes as other
forces weaken the rental market, including a surge in supply
from developers hoping to
cash in on rising rents. In September, the seasonally adjusted rate of apartments under construction was 596,000,
nearly twice the long-term average of 300,000 units, according to U.S. Census data.
Job growth also is slowing
in some markets. That, coupled with new rental housing
supply, boosted the national
vacancy rate to 4.5% in the
third quarter of this year, compared with 3.5% a year earlier,
according to John Chang, head
of research for real-estate services firm Marcus & Millichap.
Nationally, rents were up 3.5%
between the third quarters of
2016 and 2017, compared with
4.5% from 2015 to 2016, he
said.
In many markets, developers completing new projects
are offering concessions to
woo new tenants, such as one
or two months’ free rent.
Lately, the trend has spread:
Landlords in some markets are
reporting that owners of previously built properties also are
offering concessions.
This trend has been seen
mostly in markets hit by the
double whammy of job contraction and new supply, according
to executives of one large
owner, San Mateo, Calif.-based
Essex Property Trust Inc.
“When those two intersect,
bad things happen,” said Michael Schall, chief executive of
Essex.
During the early years of
the recovery from the 2007-09
recession, shares of listed residential real-estate companies
far outperformed the real-estate sector. Residential companies were up 40% in 2014,
compared with 28% for the
broader equity real-estate investment trust market. In
2015, residential companies
and the broader REIT market
were up 17.1% and 2.8%, respectively, according to the
National Association of Real
Estate Investment Trusts.
This year, as of the end of
September, the gap had narrowed to a 6.9% increase for
residential versus 6% for the
broader equity REIT sector,
the association said.
Some multifamily investors
aren’t too worried about rising
homeownership, however, because housing construction
continues to lag behind the
rate of household formation,
even with the surge in rental
housing development taken
into account.
But Wall Street is closely
watching demographic trends,
particularly marriage rates
among millennials—a life
change often accompanied by
a shift from renting to owning.
Millennials have been getting married later in life, often
waiting until their late 20s, according to Mr. Chang of Marcus & Millichap. Their marriage rate over the next five
years will likely play an important role in demand for apartments and houses.
“We’re at the leading edge
of transition,” he said.
—Ryan Dezember
contributed to this article.
PLOTS &
PLOYS
COMMERCIAL PROPERTY
Drop in Mall Values
Weighs on Sector
Weakness in the mall sector
dragged valuations lower across
the entire commercial-real-estate
market in October, according to
a report by real-estate research
firm Green Street Advisors.
Green Street’s commercial
property price index, which covers property owned by real-estate investment trusts, declined
1% to 125.5 in October from
September, the sharpest monthover-month drop since the financial crisis.
Valuations of many secondtier malls have been sliding in
recent months as some retailers
struggle to keep up with fastchanging consumer tastes and
heightened competition from ecommerce.
Mall valuations fell 6% in October from a month earlier and
by 11% in the past 12 months,
according to Green Street’s index
for that sector.
—Esther Fung
MULTIFAMILY HOUSING
Brooklyn Building
Refinances Debt
The Ashland, a 53-story
rental-apartment building in
Brooklyn’s Cultural District in
Fort Greene, refinanced its debt
with a $217.5 million loan from
Wells Fargo Multifamily Capital, according to the company
that advised on the transaction.
The 30-year fixed-rate loan
for the 586-unit multifamily
building, of which 282 units are
set aside for low- and moderateincome households, was then
securitized through Fannie Mae’s
mortgage-backed security program, said Greystone Bassuk,
the debt and equity advisory
group of real-estate lending firm
Greystone & Co.
—Esther Fung
BY ALEXANDRA BERZON
SILK ROAD GROUP
A luxury condominium tower
in the nation of Georgia that
was intended to be a Trumpbranded property has lined up
a cash infusion that will allow it
to move forward after a sixyear delay, its developers say.
The catch: It is no longer
Trump branded.
After last year’s election, the
Trump Organization started to
unwind ties to the developers,
which ended the association
with Georgia-based Silk Road
Group. But Silk Road executives said they believe they can
still turn the project’s former
association with U.S. President
Donald Trump into excitement
among potential condo buyers.
The $70 million project will
begin construction and sales
during the second half of 2018,
Silk Road officials say. The
tower will use an altered version of designs Mr. Trump approved, but now will be named
“Silk Tower,” they said.
“It is not a Trump Tower
but it has Trump-approved
standards,” said Giorgi Rtskhiladze, Silk Road’s U.S.-based
partner. “Having the approval
is as important as the logo.”
Silk Road spokeswoman Melanie Bonvicino told The Wall
Street Journal that the project
is the same one “that now-President Trump envisioned.” The
group has considered seeking to
have a street it is near named
“Donald Trump Way,” she said.
The project’s lingering association with Mr. Trump
shows how his foreign real-estate dealings reverberate well
into his presidency.
Mr. Trump continues to own
his branding and real-estate
company, which includes realestate licensing deals in foreign countries, but has said he
wouldn’t be involved in decision making. He also has said
his company wouldn’t engage
in new real-estate deals in foreign countries.
Silk Road Group in October
signed a binding agreement for
a local private-equity fund,
Georgia Co-Investment Fund, to
provide $25 million in equity
funding to the project, both
parties said. That money is
coming from Georgia billionaire
Bidzina Ivanishvili, the nation’s
richest person, said George Bachiashvili, chief executive of the
Georgia Co-Investment Fund.
Mr. Bachiashvili said Mr. Ivanishvili declined to comment on
projects managed by the fund.
In the new go-round, the
tower will be based on the architectural designs it developed
with guidance from the Trump
Organization, Silk Road Chairman George Ramishvili said.
He said he expects the project to include about 200 apartment units featuring restaurants and boutiques, with
buyers anticipated from the
Middle East, Turkey, Russia and
other parts of Eastern Europe.
“It will be the same concept, the same design as was
approved by Mr. Trump and
the Trump Organization in
2012 when he was in Georgia,”
Mr. Ramishvili said. Mr. Rtskhiladze later clarified that the
designs will likely be somewhat altered.
A planned luxury-condominium-tower project in Batumi, Georgia
MARSHALL WACE ASSET MANAGEMENT
By Any Other Name,
A Trump Tower Sells
Hedge-fund operator Marshall Wace’s new headquarters brims with flourishes meant to compete for talent with Google and Facebook.
Firm Goes Artsy to Lure Techies
BY DAVID WIGHTON
Walk into the first floor of
131 Sloane St., in London’s exclusive Knightsbridge district,
and you might assume you are
in a lavish private apartment.
With its reclaimed wood ceilings, antique industrial lighting and family photomontages,
it looks like the home of a hip
and successful creative type.
But the property is the new
headquarters of Marshall
Wace Asset Management, a
large hedge-fund operator with
$34 billion in assets under
management as of Sept. 30.
The look couldn’t be more
different from the firm’s previous home, a sterile collection
of polished wood, glass walls
and rows of computer screens
on the Strand, a main artery in
Central London.
According to co-founder Ian
Wace, the office change was
partly a response to the challenges facing the hedge-fund industry and partly a salvo in the
escalating war for top talent.
Hedge-fund managers, particularly technology-intensive
ones such as Marshall Wace,
are in a fierce battle with the
likes of Alphabet Inc.’s Google
and Facebook Inc. to hire and
retain the world’s best data
scientists. The work environment is an important part of
the package, some believe.
Mr. Wace said the firm’s attrition rate is in line with the
industry average of around
10% a year. He hopes to cut it
in half. “That would easily pay
for the extra costs of the new
office,” he said.
Silicon Valley companies
are famous for their brightly
colored offices featuring pool
tables and beverages on demand. Some financial firms
have adopted the same sort of
vibe, at least in parts of their
business. In the heart of Toronto’s financial district, Aviva
PLC, the British insurer, recently opened a new office to
house some of its digital development team, with bare concrete floors and exposed ceiling ducts, and meeting spaces
made from recycled shipping
containers painted bright blue.
Duncan Ford, Marshall
Wace’s chief operating officer,
said the firm considered a similar look, but opted for something more “grown-up.”
“That is not to say Google is
not grown-up,” he said. “We
obviously compete for talent
with the Googles and Face-
books, but we are also a different type of firm. We have fiduciary responsibilities and need
to show clients that their
money is in safe hands.”
While planning the new office, the Marshall Wace team
looked at what had been done
by some other companies, including McCann, the advertising agency owned by Interpublic Group of Cos. McCann’s
recently refurbished headquarters on New York’s Third Avenue features an open, caféstyle space used for meetings
and more general working.
“Our design goes one step
further, I suppose, in blending
that together with a residential
style as well as delivering office
functionality,” Mr. Ford said.
There was an unofficial
£500 (about $660) limit on any
single design item, though
there are a few artworks from
Mr. Wace’s own collection.
These include a pair of 200year-old life-size wooden elephants that stood outside a
Hindu temple in Rajasthan. Mr.
Wace bought them and shipped
them to the lobby of the new
offices for what he proudly
says was a total of just £15,000.
Other financial firms have
also been rethinking their
workspaces in an attempt to
break down silos and encourage face-to-face meetings. In
the recent revamp of its headquarters
in
Manhattan’s
Tribeca neighborhood, Citigroup Inc. shifted to an openplan layout where not even the
CEO has an office door.
One challenge facing hedgefund firms in particular is convincing staff and investors
they will last beyond the involvement of their founders.
Demonstrating a commitment to longevity was one reason Marshall Wace sold a 24.9%
stake to KKR & Co., a privateequity firm, in 2015. KKR is itself planning a big office move
in 2020, having taken the top
10 floors of the Hudson Yards
development in Manhattan.
Although the design phase is
some way off, senior KKR executives have recently visited the
new Marshall Wace office looking for inspiration.
“With cutting-edge design
and technology, Marshall Wace
created a physical environment where every detail is
meant to feed aspiration, a
drive to excel and encourage
collaboration,” said Scott Nuttall, KKR’s co-president and
co-chief operating officer.
THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B7
BUSINESS & FINANCE
Largest global producer
has been selling more
crude exports despite
OPEC’s deal on output
BY CHRISTOPHER ALESSI
Moscow says it is part of the
solution to the global oil glut,
but it could be part of the problem.
Russia, the world’s largest oil
producer, has ramped up its
crude exports this year, potentially undermining a deal with
the Organization of the Petroleum Exporting Countries cartel
that has helped raise oil prices.
OPEC’s agreement with Russia
and nine other countries was
meant to reduce global oil output by 2% and has helped to
raise Brent crude futures prices
by 12% so far this year, to
$63.69 a barrel.
“The Russians are putting
more oil on the market and
cashing in,” said Georgi Slavov,
head of research at commodity
brokerage Marex Spectron. As a
result, he said, the country is
“delaying the effect the OPEC
deal could have on the market.”
The scrutiny of Russia’s actions highlights the growing importance that oil investors are
giving to big producers’ exports
sold on the global market and to
their production, which can be
consumed domestically or even
stored. Exports are likely to be
discussed on Nov. 30, when Russia and OPEC are expected to
extend their agreement through
the end of 2018.
In the agreement in December 2016 with OPEC, Russia
committed to cut 300,000 barrels a day of production from its
October 2016 high of 11.59 million barrels a day, including natural-gas liquids. After a slow
start, it has begun complying
with its promise. September of
this year was the first time in
more than three years that Russian crude production, including
natural-gas liquids, fell below
year-earlier levels, according to
the
International
Energy
Agency.
However, Russian oil exports
have risen by roughly 2%, or an
average of 160,000 barrels a
day, from January through September of this year compared
with the year-earlier period, according to the Russian Energy
Ministry. In April, crude seaborne exports rose to a record
of 5.2 million barrels a day, according to cargo-tracking firm
Kpler.
“If you don’t have exports
falling with your production
cuts, you’re naturally diluting”
the market-rebalancing process,
said Harry Tchilinguirian, head
of commodity market strategy
at BNP Paribas.
Mr. Tchilinguirian noted that
while Russia, along with Iraq
and some other OPEC members,
has seen an uptick in exports,
they aren’t technically in violation of the pledge to reduce output. “The letter of the accord is
production-based, not exportbased,” he said.
A monitoring committee
overseeing the OPEC output
agreement suggested tracking
export data, as a corollary to
the production cuts, during a
compliance meeting in September. Russia hasn’t rejected the
proposal, but the energy minister, Alexander Novak, said during the gathering in Vienna that
monitoring exports poses “difficulties from the point of view of
data accuracy.” He added: “On
the whole, we are not against it
as an additional factor, but the
main factor is production.”
The Russian energy ministry
didn’t respond to a request to
comment.
To be sure, oil investors
lately have been optimistic
about OPEC’s efforts, focusing
on a reduction in a glut of
stored oil in the U.S. and other
advanced economies and on
hopes that OPEC and Russia will
extend its agreement through
the end of 2018.
Prices are up about 25% since
SPUTNIK/ASSOCIATED PRESS
Russia Looms as Problem for Oil Prices
Russian oil exports were up about 2% through September. Employees at April’s launch of a well being drilled on the Russian Arctic shelf.
late July, when Saudi Arabia,
OPEC’s largest and most influential member, pledged to curb
its exports as well as its production. The country’s Oil Ministry
last month said the kingdom
would export 7% less crude by
sea in November, compared
with the year-earlier period.
OPEC officials didn’t reply to
requests to comment.
Russia has been able to cut
output while raising exports because domestic demand is still
depressed after a deep recession, said Spencer Welch, director for oil markets and downstream at IHS Markit. It also has
invested heavily in making its
refineries more efficient, so less
crude is needed.
Oil prices fall as geopolitical
fears fade................................... B13
OPEC Expects Peak
Demand by 2040
LONDON—OPEC doesn’t expect global demand for oil to
peak before 2040, the cartel
said Tuesday, though it predicted long-term demand
growth would soon slow.
For decades, petroleum consumption has grown almost every year, but big oil companies
are planning for when demand
begins to decline because of
gains in efficiency, electric vehicles and government regulations.
Royal Dutch Shell PLC and
Norway’s Statoil SA, predict
demand could reach its high as
soon as 2025 or 2030. But
Exxon Mobil Corp. and Chevron
Corp. argue peak demand isn’t
in sight and would soon slow.
OPEC’s demand forecast is
largely in line with that of the
International Energy Agency.
In its annual World Oil outlook, the Organization of the Petroleum Exporting Countries
predicts long-term oil demand
will increase by 15.8 million barrels a day, hitting 111.1 million
barrels a day in 2040, compared
with 95.4 million barrels a day in
2016. That growth is expected
to be fueled by high population
growth and a burgeoning middle
class in developing countries.
“Within the developing countries, China is expected to continue to be the largest consumer of oil” through 2040,
while India “will be the region
with the second-largest overall
demand growth,” the report said.
However, OPEC said demand
in the Organization for Economic Cooperation and Development, a group of 35 industrialized, oil-consuming nations
including the U.S., is expected to
decline by 8.9 million barrels a
day during the run-up to 2040.
The report highlighted that
global annual demand growth
is expected to slow to 810,000
barrels a day in 2022, versus
1.45 million barrels a day in
2017, due to expected higher oil
prices, efficiency gains, lower
population growth in the OECD
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THE WALL STREET JOURNAL.
B8 | Wednesday, November 8, 2017
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Tuesday, November 7, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 26.26
t AES
AES 10.51
Aflac
AFL 83.81
AT&T
T
33.07
AbbottLabs ABT 55.16
AbbVie
ABBV 93.96
Accenture ACN 143.50
AcuityBrands AYI 160.03
Adient
ADNT 78.09
t AdvanceAuto AAP 79.38
AdvSemiEngg ASX 6.14
Aegon
AEG 5.89
AerCap
AER 52.19
Aetna
AET 176.83
AffiliatedMgrs AMG 185.54
AgilentTechs A
68.25
AgnicoEagle AEM 45.04
Agrium
AGU 107.22
AirProducts APD 159.77
t AlaskaAir ALK 62.20
Albemarle ALB 143.13
Alcoa
AA 46.97
s AlexandriaRealEst ARE 126.06
Alibaba
BABA 188.51
Alleghany Y
582.76
Allegion
ALLE 83.53
Allergan
AGN 172.97
AllianceData ADS 229.72
AllianceBernstein AB 25.00
AlliantEnergy LNT 44.17
AllisonTransm ALSN 43.82
s Allstate
ALL 99.18
AllyFinancial ALLY 26.46
AlticeUSA ATUS 23.06
Altria
MO 64.31
AlumofChina ACH 19.48
Ambev
ABEV 6.12
s Ameren
AEE 62.87
AmericaMovil AMX 17.44
AmericaMovil A AMOV 17.30
AmCampus ACC 42.19
s AEP
AEP 75.19
s AmericanExpress AXP 95.37
AmericanFin AFG 104.94
AIG
AIG 62.13
AmerTowerREIT AMT 150.66
AmerWaterWorks AWK 90.00
Amerigas
APU 46.10
Ameriprise AMP 159.23
AmerisourceBrgn ABC 74.91
Ametek
AME 68.56
Amphenol APH 87.37
AnadarkoPetrol APC 51.08
Andeavor ANDV 111.28
AB InBev BUD 118.66
AnnalyCap NLY 11.24
AnteroResources AR 19.70
s Anthem
ANTM 217.47
Aon
AON 140.21
Apache
APA 45.19
ApartmtInv AIV 44.90
ApolloGlobalMgmt APO 31.40
s AquaAmerica WTR 36.28
Aramark
ARMK 43.25
ArcelorMittal MT 29.28
ArcherDaniels ADM 39.54
Arconic
ARNC 25.08
s AristaNetworks ANET 209.56
ArrowElec ARW 78.44
AstraZeneca AZN 33.61
Athene
ATH 49.53
AtmosEnergy ATO 88.57
Autohome ATHM 64.88
Autoliv
ALV 125.46
AutoZone AZO 603.56
Avalonbay AVB 183.76
Avangrid
AGR 51.32
AveryDennison AVY 107.04
AxaltaCoating AXTA 33.06
BB&T
BBT 48.23
BCE
BCE 47.74
BHPBilliton BHP 43.23
BHPBilliton BBL 38.37
s BP
BP 41.48
BRF
BRFS 12.84
BT Group BT 16.50
BWX Tech BWXT 60.04
BakerHughes BHGE 33.40
Ball
BLL 41.05
BancoBilbaoViz BBVA 8.32
BancodeChile BCH 91.28
BancoMacro BMA 119.22
BcoSantChile BSAC 30.76
BancoSantander SAN 6.46
BanColombia CIB 37.53
BankofAmerica BAC 27.18
-0.02
0.16
-0.76
0.21
0.15
1.00
-0.43
-6.04
-0.55
-1.33
-0.06
-0.02
-0.11
-0.12
-0.52
0.03
-0.15
-0.61
0.97
-1.74
1.16
-0.32
0.39
0.67
2.25
0.44
-1.37
-0.97
-0.45
0.58
-0.02
0.09
-0.39
-0.85
0.86
0.24
-0.12
0.75
-0.11
-0.02
0.17
1.46
-0.92
0.97
-0.36
0.50
1.39
0.35
-1.42
0.05
0.01
0.13
-0.75
-0.29
-1.92
0.20
-0.39
1.17
0.03
-0.55
0.16
0.29
0.20
-0.20
-0.45
0.27
-0.53
2.88
0.31
-0.61
1.00
0.73
5.80
0.25
-3.44
0.37
0.49
-0.03
0.26
-1.25
0.01
-0.18
-0.27
0.07
-0.21
-0.27
-0.99
-0.52
-0.40
-0.15
0.79
-4.07
-0.26
-0.10
0.25
-0.57
Stock
Net
Sym Close Chg
BankofMontreal BMO 77.61 -0.36
BankNY Mellon BK 51.07 -0.28
BkNovaScotia BNS 65.53 -0.29
Barclays
BCS 9.48 -0.11
Bard CR
BCR 333.57 -0.82
BarrickGold ABX 13.99 -0.02
BaxterIntl BAX 64.32 -0.04
BectonDickinson BDX 221.27 -0.93
Berkley
WRB 69.03 -0.39
BerkHathwy A BRK.A 279360-809.02
BerkHathwy B BRK.B 186.30 -0.38
BerryGlobal BERY 57.98 -0.63
BestBuy
BBY 55.13 -1.26
Bio-RadLab A BIO 262.22 2.40
Bio-RadLab B BIO.B258.60 -2.95
BlackKnight BKI 46.10 -0.05
BlackBerry BB 10.83 -0.14
BlackRock BLK 473.37 -2.24
BlackstoneGroup BX 33.04 0.01
BoardwalkPipe BWP 14.68 0.15
s Boeing
BA 266.13 2.06
BorgWarner BWA 52.40 -0.24
BostonProperties BXP 124.19 0.76
BostonScientific BSX 27.96 0.15
Braskem
BAK 30.60 -0.86
Bristol-Myers BMY 61.91 0.23
BritishAmTob BTI 64.89 -0.16
BroadridgeFinl BR 87.37 0.21
BrookfieldMgt BAM 41.78 -0.17
BrookfieldInfr BIP 43.29 0.10
Brown&Brown BRO 50.23 -0.31
Brown-Forman A BF.A 55.81 0.47
Brown-Forman B BF.B 55.74 0.64
BuckeyePtrs BPL 53.12 0.22
Bunge
BG 67.43 -0.21
BurlingtonStores BURL 97.28 -1.33
CBD Pao
CBD 22.55 -0.42
s CBRE Group CBG 40.88 0.13
CBS A
CBS.A 57.92 0.61
CBS B
CBS 57.61 0.65
CF Industries CF 36.89 -2.32
CGI Group GIB 53.31 -0.29
CIT Group CIT 45.17 -0.78
CMS Energy CMS 48.91 0.86
s CNA Fin
CNA 54.77 -0.15
CNOOC
CEO 143.26 -0.10
CPFLEnergia CPL 16.75 -0.10
CRH
CRH 35.42 -0.98
CVS Health CVS 68.95 2.15
CabotOil
COG 27.84 -0.89
CamdenProperty CPT 94.09 0.41
CampbellSoup CPB 46.23 0.80
CIBC
CM 89.76 -0.37
CanNtlRlwy CNI 80.14 -0.20
s CanNaturalRes CNQ 36.18 -0.55
CanPacRlwy CP 172.38 -0.75
s Canon
CAJ 38.19 0.49
CapitalOne COF 90.12 -2.18
CardinalHealth CAH 60.27 0.02
Carlisle
CSL 110.13 -0.43
CarMax
KMX 73.42 -1.49
Carnival
CCL 66.38 0.71
Carnival
CUK 66.46 0.42
Caterpillar CAT 138.81 1.10
Celanese A CE 106.86 0.56
Cemex
CX
8.08 0.03
CenovusEnergy CVE 11.21 -0.02
Centene
CNC 94.81 -0.51
CenterPointEner CNP 29.95 0.23
CentraisElBras EBR 6.43 0.14
CenturyLink CTL 16.22 -0.45
Chemours CC 51.00 -1.10
Chevron
CVX 117.24 0.20
ChinaEastrnAir CEA 25.47 -0.01
ChinaLifeIns LFC 17.33 -0.11
ChinaMobile CHL 50.75 0.09
ChinaPetrol SNP 76.66 1.12
ChinaSoAirlines ZNH 38.18 -0.15
ChinaTelecom CHA 50.47 0.24
ChinaUnicom CHU 15.22 0.27
Chipotle
CMG 274.50 -1.27
Chubb
CB 149.80 0.60
ChunghwaTelecom CHT 33.83 -0.11
Church&Dwight CHD 43.76 0.44
s Cigna
CI 205.49 0.49
CimarexEnergy XEC 125.97 0.61
Citigroup
C
72.71 -1.09
CitizensFin CFG 37.67 -1.05
Clorox
CLX 129.70 1.97
Coca-Cola KO 45.94 0.47
Coca-Cola Euro CCE 37.89 -1.97
Coca-Cola Femsa KOF 67.51 -0.70
Colgate-Palmolive CL 70.90 0.65
ColonyNorthStar CLNS 12.36 -0.06
Comerica
CMA 77.16 -2.38
SABESP
SBS 8.73 -0.34
ConagraBrands CAG 33.76 0.44
s ConchoRscs CXO 146.71 0.09
s ConocoPhillips COP 53.48 -0.19
s ConEd
ED 87.69 1.37
Stock
Net
Sym Close Chg
ConstBrands A STZ 215.48
ContinentalRscs CLR 43.59
Cooper
COO 229.33
Corning
GLW 32.25
Coty
COTY 14.45
Credicorp
BAP 207.45
CreditSuisse CS 16.07
CrestwoodEquity CEQP 24.35
CrownCastle CCI 111.76
CrownHoldings CCK 59.79
Cullen/Frost CFR 95.16
Cummins
CMI 171.86
DTE Energy DTE 112.81
DXC Tech DXC 92.53
s Danaher
DHR 93.20
Darden
DRI 81.65
DaVita
DVA 58.96
s Deere
DE 135.71
DellTechnologies DVMT 82.48
DelphiAutomotive DLPH 97.26
DeltaAir
DAL 49.91
DeutscheBank DB 16.68
DevonEnergy DVN 41.26
Diageo
DEO 135.07
DigitalRealty DLR 122.01
DiscoverFinSvcs DFS 66.44
Disney
DIS 101.61
DolbyLab
DLB 59.03
DollarGeneral DG 80.66
DominionEner D
81.39
Domino's
DPZ 170.10
Donaldson DCI 47.57
DouglasEmmett DEI 40.41
Dover
DOV 96.16
DowDuPont DWDP 71.14
DrPepperSnap DPS 84.48
DrReddy'sLab RDY 35.91
DukeEnergy DUK 89.36
DukeRealty DRE 28.98
ENI
E
34.09
EOG Rscs EOG 106.09
EQT
EQT 63.24
EQT Midstream EQM 72.99
EastmanChem EMN 90.61
Eaton
ETN 78.67
EatonVance EV 50.70
Ecolab
ECL 130.95
s Ecopetrol
EC 11.99
EdisonInt
EIX 79.40
EdwardsLife EW 104.41
EmersonElectric EMR 63.08
EnbridgeEnPtrs EEP 14.70
Enbridge
ENB 36.71
Encana
ECA 12.75
EnelAmericas ENIA 10.61
EnelChile
ENIC 5.72
EnelGenChile EOCC 25.87
EnergyTrfrEquity ETE 18.70
EnergyTransfer ETP 17.34
Entergy
ETR 86.85
EnterpriseProd EPD 25.02
Equifax
EFX 107.42
EquityLife ELS 89.36
s EquityResdntl EQR 69.56
EssexProp ESS 255.00
EsteeLauder EL 122.22
EverestRe RE 227.03
s EversourceEner ES 64.52
Exelon
EXC 41.27
s ExtraSpaceSt EXR 85.68
ExxonMobil XOM 83.58
FMC
FMC 93.51
s FactSet
FDS 191.34
FederalRealty FRT 128.61
FedEx
FDX 221.16
Ferrari
RACE 114.89
FiatChrysler FCAU 17.87
FibriaCelulose FBR 15.16
s FidelityNatlFin FNF 37.82
FNFV Group FNFV 17.45
FidelityNtlInfo FIS 90.47
58.com
WUBA 67.44
s FirstAmerFin FAF 55.37
FirstData
FDC 16.84
FirstRepBank FRC 93.70
FirstEnergy FE 33.14
FleetCorTech FLT 177.00
Fluor
FLR 48.08
FomentoEconMex FMX 86.73
FordMotor F
12.16
ForestCIty A FCE.A 24.99
Fortis
FTS 37.73
Fortive
FTV 73.47
FortBrandsHome FBHS 64.46
Franco-Nevada FNV 83.49
FranklinRscs BEN 41.78
Freeport-McMoRan FCX 14.55
FreseniusMed FMS 48.59
GGP
GGP 22.20
s Gallagher AJG 63.71
-0.32
-0.35
1.69
0.41
-0.07
-4.23
-0.09
...
-0.05
-0.63
-2.64
-0.73
1.23
-0.49
0.58
-0.75
-0.45
0.40
0.96
0.28
-0.66
-0.15
0.40
-1.83
0.18
-0.58
0.97
-0.14
-0.02
0.83
-3.36
-0.25
0.39
0.04
0.90
0.01
-0.83
1.49
0.06
0.24
-0.87
-0.59
0.26
0.25
0.36
-0.27
-0.96
0.13
0.55
1.25
-1.44
0.04
-0.11
-0.16
-0.29
-0.09
-0.58
0.63
0.15
0.49
-0.09
-0.61
-0.24
0.35
1.19
1.10
-1.43
0.82
0.58
-0.34
-0.17
2.55
0.31
1.69
0.21
-2.36
-0.26
-0.48
-0.36
-0.20
-2.66
-0.79
-0.29
-0.54
-0.73
0.37
-2.86
-0.49
-1.02
-0.17
-0.02
-0.08
0.61
0.24
-1.01
-0.81
-0.09
0.08
3.19
-0.43
Stock
Net
Sym Close Chg
Gap
GPS 25.71
Gartner
IT 117.75
Gazit-Globe GZT 9.46
GeneralDynamics GD 203.76
GeneralElec GE 20.21
t GeneralMills GIS 50.97
GeneralMotors GM 41.70
Genpact
G
30.20
GenuineParts GPC 86.43
Gerdau
GGB 3.21
Gildan
GIL 29.61
t GlaxoSmithKline GSK 35.82
GlobalPayments GPN 103.90
s GoDaddy
GDDY 48.61
Goldcorp
GG 13.20
GoldmanSachs GS 239.81
Graco
GGG 131.86
Grainger
GWW 205.18
s GreatPlainsEner GXP 33.71
GpoAvalAcciones AVAL 8.32
GpFinSantandMex BSMX 8.16
GrupoTelevisa TV 20.69
GuidewireSoftware GWRE 80.08
HCA Healthcare HCA 77.92
HCP
HCP 27.00
HDFC Bank HDB 94.63
HP
HPQ 21.38
HSBC
HSBC 48.05
Halliburton HAL 45.27
Hanesbrands HBI 19.08
t HarleyDavidson HOG 44.78
Harris
HRS 139.37
HartfordFinl HIG 55.34
HealthcareAmer HTA 30.43
Heico
HEI 91.36
Heico A
HEI.A 77.65
Helmerich&Payne HP 58.46
Herbalife
HLF 66.26
Hershey
HSY 105.97
Hess
HES 47.95
HewlettPackard HPE 13.57
s Hilton
HLT 72.61
s HollyFrontier HFC 42.33
HomeDepot HD 163.66
s HondaMotor HMC 33.53
s Honeywell HON 146.97
HormelFoods HRL 31.50
s DR Horton DHI 44.95
HostHotels HST 19.79
HuanengPower HNP 27.11
Hubbell
HUBB 124.61
Humana
HUM 256.31
s HuntingtonIngalls HII 233.35
Huntsman HUN 31.67
HyattHotels H
69.53
ICICI Bank IBN 9.38
ING Groep ING 18.15
Invesco
IVZ 35.61
IDEX
IEX 127.48
IllinoisToolWks ITW 157.83
Infosys
INFY 14.85
Ingersoll-Rand IR
85.56
Ingredion
INGR 130.43
ICE
ICE 65.58
InterContinentl IHG 56.59
IBM
IBM 151.35
s IntlFlavors IFF 149.99
IntlPaper
IP
55.25
t Interpublic IPG 18.54
InvitationHomes INVH 23.20
IronMountain IRM 40.60
IsraelChemicals ICL
4.16
ItauUnibanco ITUB 12.57
JPMorganChase JPM 98.75
JacobsEngineering JEC 60.93
JamesHardie JHX 14.75
JanusHenderson JHG 34.59
J&J
JNJ 139.77
JohnsonControls JCI 40.99
s JonesLangLaSalle JLL 142.50
JuniperNetworks JNPR 24.50
KAR Auction KAR 49.02
KB Fin
KB 51.60
KKR
KKR 19.99
KT
KT 14.10
KSCitySouthern KSU 106.06
Kellogg
K
60.84
KeyCorp
KEY 18.10
s KeysightTechs KEYS 45.41
KilroyRealty KRC 74.02
t KimberlyClark KMB 111.93
KimcoRealty KIM 18.82
KinderMorgan KMI 18.04
Knight-Swift KNX 38.58
Kohl's
KSS 40.69
KoninklijkePhil PHG 40.88
KoreaElcPwr KEP 17.32
Kroger
KR 21.31
s Kyocera
KYO 71.08
LATAMAirlines LTM 13.25
L Brands
LB 46.94
LG Display LPL 13.09
LINE
LN 42.62
L3 Tech
LLL 186.10
LabCpAm LH 152.39
LambWeston LW 51.66
s LasVegasSands LVS 67.34
Lazard
LAZ 46.39
Lear
LEA 174.44
Leggett&Platt LEG 45.94
Leidos
LDOS 62.58
Lennar A
LEN 56.48
Lennar B
LEN.B 48.66
LennoxIntl LII 191.65
LeucadiaNatl LUK 25.88
s LibertyProperty LPT 44.42
EliLilly
LLY 83.28
LincolnNational LNC 75.40
LionsGate A LGF.A 29.16
LionsGate B LGF.B 28.38
s LiveNationEnt LYV 45.45
LloydsBanking LYG 3.59
LockheedMartin LMT 313.29
-0.35
-0.80
0.14
1.39
0.08
0.87
-0.44
-0.26
-0.83
-0.13
0.23
-0.32
-0.37
1.39
-0.11
-3.68
-0.30
1.60
0.33
0.08
-0.11
...
-1.46
1.05
0.16
-0.84
-0.06
-0.21
0.19
-0.26
-0.37
0.38
-0.55
0.05
0.10
0.20
0.16
-0.34
1.59
-0.28
-0.06
-0.78
0.26
-0.56
0.01
1.37
0.73
0.11
...
0.40
-0.94
1.83
-2.86
0.68
0.68
-0.32
-0.13
-0.26
-0.39
-0.16
0.03
-0.59
0.81
-0.62
-0.82
0.51
3.54
-0.56
-0.55
0.08
-0.04
-0.08
-0.34
-2.03
-0.18
-0.35
-0.48
0.01
-0.10
3.53
-0.24
-0.24
-1.03
-0.08
...
0.07
0.64
-0.48
0.33
0.32
2.06
0.20
-0.04
-2.20
-1.93
-0.27
-0.20
-0.02
2.07
-0.22
-0.64
-0.12
0.50
-0.30
0.65
-0.40
0.79
-0.72
-0.03
0.08
-0.37
0.34
0.27
0.37
-0.10
0.38
0.34
-1.24
0.45
0.52
0.97
-0.03
3.21
Stock
Net
Sym Close Chg
s Loews
L
49.49 -0.19
Lowe's
LOW 77.63 0.22
LyondellBasell LYB 105.92 -0.57
M&T Bank MTB 162.88 -5.83
MGM Resorts MGM 31.46 -0.25
MPLX
MPLX 35.17 0.47
s MSCI
MSCI 125.98 -1.72
Macerich
MAC 58.76 4.57
MacquarieInfr MIC 68.45 -0.33
MagellanMid MMP 69.35 -0.04
MagnaIntl MGA 54.29 -0.04
s Manpower MAN 125.10 -0.04
ManulifeFin MFC 20.76 -0.08
MarathonOil MRO 16.16 -0.17
s MarathonPetrol MPC 63.11 0.76
Markel
MKL 1082.48 -1.84
Marsh&McLennan MMC 82.46 -0.17
MartinMarietta MLM 210.04 -2.53
Masco
MAS 39.08 -0.14
Mastercard MA 149.97 -0.12
McCormick MKC 95.18 1.19
McCormickVtg MKC.V 94.34 0.64
s McDonalds MCD 170.77 0.70
McKesson MCK 136.93 1.72
Medtronic MDT 78.01 0.32
Merck
MRK 55.59 -0.29
MetLife
MET 53.40 -0.93
MettlerToledo MTD 624.58-10.53
s MichaelKors KORS 54.64 0.02
MicroFocus MFGP 34.58 -0.14
MidAmApt MAA 105.03 0.75
MitsubishiUFJ MTU 6.70 -0.01
MizuhoFin MFG 3.62 -0.01
MobileTeleSys MBT 11.30 0.19
MohawkIndustries MHK 260.92 0.30
MolsonCoors A TAP.A 85.85
...
MolsonCoors B TAP 78.88 -0.01
Monsanto MON 119.54 0.01
Moody's
MCO 143.77 -0.74
MorganStanley MS 49.39 -0.75
Mosaic
MOS 22.56 0.07
MotorolaSolutions MSI 92.11 -0.32
s NRG Energy NRG 28.42 0.17
NTTDoCoMo DCM 24.67 0.17
NVR
NVR 3244.19-19.39
NationalGrid NGG 61.49 0.22
NatlOilwell NOV 35.10 -0.40
NatlRetailProp NNN 41.60 0.54
NewOrientalEduc EDU 87.51 -0.49
NY CmntyBcp NYCB 12.19 -0.22
NewellBrands NWL 30.65 -0.17
NewfieldExpln NFX 32.86 -0.21
NewmontMining NEM 36.04 -0.33
NextEraEnergy NEE 155.49 3.63
NielsenHoldings NLSN 38.00 0.62
Nike
NKE 55.15 -0.89
s NiSource
NI
27.47 0.26
NobleEnergy NBL 28.91 -0.09
Nokia
NOK 5.05 -0.04
NomuraHoldings NMR 5.84 0.16
t Nordstrom JWN 38.31 -0.95
NorfolkSouthern NSC 129.45 -0.67
NorthropGrumman NOC 303.31 1.45
Novartis
NVS 82.39 -1.11
NovoNordisk NVO 49.71 0.01
Nucor
NUE 57.69 -0.29
NuSTAREnergy NS 33.15 -0.07
OGE Energy OGE 35.84 0.46
ONEOK
OKE 53.17 0.37
OccidentalPetrol OXY 68.75 -0.07
Och-Ziff
OZM 3.22 -0.06
Olin
OLN 35.94 0.08
t Omnicom OMC 65.52 -1.03
Oracle
ORCL 50.49 0.09
Orange
ORAN 16.54
...
OrbitalATK OA 132.95 0.10
Orix
IX
87.25 -0.52
Oshkosh
OSK 87.29 -0.83
OwensCorning OC 82.22 -0.21
PG&E
PCG 56.30 -0.47
PLDT
PHI 32.94 -0.61
PNC Fin
PNC 134.09 -4.50
POSCO
PKX 72.10 -0.40
PPG Ind
PPG 116.34
...
PPL
PPL 37.21 0.70
PVH
PVH 122.74 -4.65
PackagingCpAm PKG 111.35 0.39
PaloAltoNtwks PANW 146.69 -1.28
ParkHotels PK 29.25 -0.01
ParkerHannifin PH 185.47 0.85
ParsleyEnergy PE 28.40 0.15
Pearson
PSO 9.12 -0.02
s PembinaPipeline PBA 35.83 0.39
Pentair
PNR 68.94 -0.54
PepsiCo
PEP 110.47 1.21
PerkinElmer PKI 71.13 0.58
Perrigo
PRGO 80.70 -2.73
PetroChina PTR 71.79 0.46
PetroleoBrasil PBR 10.61 -0.56
PetroleoBrasilA PBR.A 10.15 -0.57
Pfizer
PFE 35.36 0.04
PhilipMorris PM 103.02 0.88
Phillips66 PSX 94.57 0.14
PinnacleFoods PF 53.66 0.57
PinnacleWest PNW 89.72 0.81
PioneerNatRscs PXD 161.67 2.87
PlainsAllAmPipe PAA 21.47 0.70
PlainsGP
PAGP 22.03 1.12
PolarisIndustries PII 114.56 -0.72
Potash
POT 19.17 -0.10
Praxair
PX 148.95 1.48
s PrincipalFin PFG 69.11 -0.11
Procter&Gamble PG 86.98 0.93
s Progressive PGR 50.49 0.28
s Prologis
PLD 66.53 -0.01
PrudentialFin PRU 111.94 -0.45
Prudential PUK 48.40 -0.47
PublicServiceEnt PEG 49.95 0.30
PublicStorage PSA 211.49 2.17
s PulteGroup PHM 30.44 -0.06
Qudian
QD 27.52 0.42
QuestDiag DGX 92.66 -0.49
Stock
Net
Sym Close Chg
s QuintilesIMS Q
108.19
RELX
RENX 22.27
RELX
RELX 23.06
RPC
RES 25.62
RPM
RPM 52.20
RSP Permian RSPP 36.82
RalphLauren RL 85.00
RaymondJames RJF 84.03
Raytheon RTN 186.80
RealtyIncome O
56.22
RedHat
RHT 121.92
RegencyCtrs REG 65.26
RegionsFin RF 15.47
ReinsuranceGrp RGA 151.04
RepublicServices RSG 64.14
ResMed
RMD 82.49
RestaurantBrands QSR 65.53
RiceEnergy RICE 28.65
RioTinto
RIO 49.89
RobertHalf RHI 52.43
Rockwell
ROK 200.83
RockwellCollins COL 134.98
RogersComm B RCI 52.25
Rollins
ROL 45.37
s RoperTech ROP 260.35
RoyalBkCanada RY 79.31
RoyalBkScotland RBS 7.30
s RoyalCaribbean RCL 129.23
RoyalDutchA RDS.A 64.54
RoyalDutchB RDS.B 66.47
SAP
SAP 114.22
S&P Global SPGI 159.07
SINOPECShanghai SHI 58.94
SK Telecom SKM 25.50
SLGreenRealty SLG 96.46
s Salesforce.com CRM 102.72
Sanofi
SNY 45.58
SantanderConUSA SC 16.62
Sasol
SSL 30.44
Scana
SCG 44.53
Schlumberger SLB 66.43
SchwabC
SCHW 44.15
s ScottsMiracleGro SMG102.42
SealedAir SEE 43.61
SemicondctrMfg SMI 8.64
s SempraEnergy SRE 120.52
SensataTech ST 48.10
s ServiceCorp SCI 36.14
ServiceMaster SERV 47.26
ServiceNow NOW 125.53
ShawComm B SJR 22.62
SherwinWilliams SHW 394.01
ShinhanFin SHG 44.78
Shopify
SHOP 99.71
SimonProperty SPG 159.05
SmithAO
AOS 59.50
Smith&Nephew SNN 37.08
t Smucker
SJM 101.77
Snap
SNAP 15.12
SnapOn
SNA 158.55
SOQUIMICH SQM 59.83
s Sony
SNE 46.01
Southern
SO 51.72
SoCopper SCCO 44.02
SouthwestAirlines LUV 53.87
SpectraEnerPtrs SEP 42.69
SpectrumBrands SPB 103.85
s SpiritAeroSys SPR 82.50
Sprint
S
5.75
Square
SQ 36.76
s StanleyBlackDck SWK 165.20
StateStreet STT 90.28
Statoil
STO 20.76
Steris
STE 87.31
STMicroelec STM 24.41
Stryker
SYK 156.22
SumitomoMits SMFG 7.94
s SunCommunities SUI 92.95
SunLifeFinancial SLF 39.15
s SuncorEnergy SU 36.05
SunTrustBanks STI 58.08
SynchronyFin SYF 32.36
Syngenta SYT 92.30
Sysco
SYY 52.59
TAL Education TAL 30.36
TE Connectivity TEL 93.23
Telus
TU 36.77
Ternium
TX 28.52
TIM Part
TSU 17.52
TJX
TJX 68.30
s TaiwanSemi TSM 42.51
Tapestry
TPR 41.93
TargaResources TRGP 44.29
-0.37
-0.08
-0.11
-0.64
-0.45
0.42
-3.03
-1.29
2.34
0.96
0.84
1.02
-0.41
0.16
0.59
-0.75
-0.37
-0.28
-0.50
0.18
4.00
-0.06
0.17
0.26
2.15
-0.44
-0.08
3.89
-0.98
-0.81
-0.77
0.43
-0.90
-0.37
1.16
0.30
-0.49
-0.31
0.06
0.63
-0.65
-0.50
3.31
-0.20
-0.47
1.65
-0.25
-0.13
0.03
0.80
-0.22
0.07
-0.56
-0.13
4.06
-0.17
-0.34
1.78
0.29
-0.60
0.89
0.14
0.07
-0.19
-0.65
-0.30
-0.39
-0.72
-0.15
-0.42
1.64
-2.01
-0.09
0.11
-0.37
0.57
-0.03
-0.10
-0.47
0.37
-2.07
-0.41
...
-1.58
0.22
0.26
0.17
-0.46
-0.46
0.07
0.08
0.45
-0.99
Stock
Net
Sym Close Chg
Target
TGT 57.89
TataMotors TTM 33.42
TechnipFMC FTI 29.29
TeckRscsB TECK 21.47
TelecomArgentina TEO 32.65
TelecomItalia TI
8.61
TelecomItalia A TI.A 7.05
s TeledyneTech TDY 184.25
Teleflex
TFX 260.31
TelefonicaBras VIV 14.95
Telefonica TEF 10.11
TelekmIndonesia TLK 30.43
Tenaris
TS 30.26
s Teradyne
TER 43.53
TevaPharm TEVA 11.69
Textron
TXT 54.28
ThermoFisherSci TMO 193.21
ThomsonReuters TRI 44.51
ThorIndustries THO 128.04
3M
MMM 230.05
Tiffany
TIF 92.35
TimeWarner TWX 94.66
Toll Bros
TOL 45.35
Torchmark TMK 85.18
Toro
TTC 62.71
TorontoDomBk TD 57.48
s Total
TOT 56.84
TotalSystem TSS 72.00
s ToyotaMotor TM 127.46
TransCanada TRP 48.96
TransDigm TDG 283.33
TransUnion TRU 53.13
Travelers
TRV 133.72
TurkcellIletism TKC 9.40
TurquoiseHill TRQ 3.17
Twitter
TWTR 19.66
TylerTech TYL 172.66
TysonFoods TSN 73.09
UBS Group UBS 16.90
UDR
UDR 39.29
UGI
UGI 48.03
US Foods
USFD 26.04
UltraparPart UGP 23.40
Unilever
UN 56.85
Unilever
UL 55.61
UnionPacific UNP 117.04
UnitedContinental UAL 58.71
UnitedMicro UMC 2.53
UPS B
UPS 113.95
s UnitedRentals URI 147.55
US Bancorp USB 53.45
US Steel
X
26.95
UnitedTech UTX 120.75
UnitedHealth UNH 212.70
UniversalHealthB UHS 101.05
s UnumGroup UNM 52.70
VEREIT
VER 8.03
VF
VFC 68.68
s Visa
V
112.09
s VailResorts MTN 235.74
Vale
VALE 10.32
ValeroEnergy VLO 81.83
Vantiv
VNTV 68.21
VarianMed VAR 106.47
Vedanta
VEDL 20.62
VeevaSystems VEEV 61.27
Ventas
VTR 64.33
Verizon
VZ 45.57
VistraEnergy VST 18.95
s VMware
VMW 120.43
VornadoRealty VNO 73.97
VoyaFinancial VOYA 42.05
VulcanMaterials VMC 122.66
WABCO
WBC 149.07
WEC Energy WEC 68.24
s W.P.Carey WPC 71.22
Wabtec
WAB 76.20
Wal-Mart WMT 88.95
WasteConnections WCN 69.14
WasteMgt WM 81.63
Waters
WAT 196.35
s Watsco
WSO 167.61
WellCareHealth WCG 202.40
WellsFargo WFC 55.05
Welltower HCN 68.59
WestPharmSvcs WST 101.04
WestarEnergy WR 54.59
WestAllianceBcp WAL 54.56
WesternGasEquity WGP 38.08
WesternGasPtrs WES 47.22
WesternUnion WU 19.16
s WestlakeChem WLK 91.62
WestpacBanking WBK 24.79
-1.40
-1.58
-0.06
0.01
-0.39
-0.16
-0.08
0.76
3.73
-0.30
-0.11
-0.31
-0.42
0.08
-0.72
-0.15
-0.32
-0.15
-5.06
-0.26
-0.64
0.20
0.51
-0.50
-0.27
-0.12
-0.12
-1.66
1.83
0.41
0.33
-0.77
0.28
-0.08
-0.04
0.27
-1.90
0.91
-0.15
0.40
0.39
-0.92
-0.61
-0.23
-0.17
-0.29
-1.21
-0.02
0.03
-0.85
-1.40
-0.56
0.36
0.58
-0.70
-0.37
-0.03
-0.39
0.17
-0.97
-0.21
0.38
-1.16
0.29
-0.60
-0.08
0.24
0.04
-0.41
1.22
-0.28
-0.01
-1.95
-0.91
0.59
1.33
-0.85
0.25
0.40
0.39
0.72
1.45
-2.71
-1.13
0.59
0.44
0.59
-1.89
-0.04
0.32
-0.27
5.60
-0.03
Stock
Net
Sym Close Chg
WestRock WRK 58.95
Weyerhaeuser WY 35.99
WheatonPrecMetals WPM 21.16
Whirlpool WHR 162.56
Williams
WMB 28.77
WilliamsPartners WPZ 37.26
Wipro
WIT 5.05
WooriBank WF 41.60
Wyndham WYN 108.68
s XPO Logistics XPO 73.58
XcelEnergy XEL 50.03
Xerox
XRX 28.59
Xylem
XYL 66.61
YPF
YPF 24.72
s YumBrands YUM 81.01
YumChina YUMC 41.20
ZTO Express ZTO 17.11
ZayoGroup ZAYO 34.46
ZimmerBiomet ZBH 108.72
Zoetis
ZTS 68.45
NASDAQ
AGNC Invt AGNC 19.57
Ansys
ANSS 151.93
ASML
ASML 183.52
Abiomed
ABMD 197.21
ActivisionBliz ATVI 60.96
AdobeSystems ADBE 180.88
AdvMicroDevices AMD 12.05
AkamaiTech AKAM 53.76
AlexionPharm ALXN 117.42
s AlignTech ALGN 246.46
Alkermes ALKS 47.70
AlnylamPharm ALNY 129.50
Alphabet C GOOG 1033.33
Alphabet A GOOGL 1052.39
Altaba
AABA 72.22
s Amazon.com AMZN 1123.17
Amdocs
DOX 62.95
Amerco
UHAL 380.15
AmericanAirlines AAL 46.46
Amgen
AMGN 173.48
AnalogDevices ADI 91.90
s Apple
AAPL 174.81
AppliedMaterials AMAT 56.47
ArchCapital ACGL 95.60
s Atlassian
TEAM 51.81
Autodesk ADSK 123.40
ADP
ADP 112.75
Baidu
BIDU 243.47
BankofOzarks OZRK 44.73
Biogen
BIIB 313.57
BioMarinPharm BMRN 83.77
Bioverativ BIVV 53.41
bluebirdbio BLUE 146.70
BrighthouseFin BHF 56.95
Broadcom AVGO 271.32
CA
CA 32.30
CDK Global CDK 63.26
CDW
CDW 68.35
CH Robinson CHRW 80.50
CME Group CME 137.55
CSX
CSX 51.82
s CadenceDesign CDNS 44.30
CaesarsEnt CZR 12.95
Carlyle
CG 22.00
s CboeGlobalMkts CBOE 113.42
Celgene
CELG 102.33
s CentennialRsc CDEV 21.02
Cerner
CERN 65.92
CharterComms CHTR 343.01
CheckPointSftw CHKP 104.99
ChinaLodging HTHT 129.61
CincinnatiFin CINF 72.87
Cintas
CTAS 147.87
CiscoSystems CSCO 34.40
CitrixSystems CTXS 84.48
s Cognex
CGNX 136.01
CognizantTech CTSH 74.65
Coherent
COHR 265.47
Comcast A CMCSA 36.39
CommerceBcshrs CBSH 56.10
CommScope COMM 33.91
Copart
CPRT 35.75
s CoStarGroup CSGP 299.36
Costco
COST 166.28
Ctrip.com CTRP 45.90
DISH Network DISH 50.07
DentsplySirona XRAY 64.38
s DiamondbackEner FANG 111.80
DiscoveryComm A DISCA 17.33
DiscoveryComm C DISCK 16.21
Stock
Tuesday, November 7, 2017
NYSE highs - 167
AT&T Nts 2066 TBB
AberdeenGrChinaFd GCH
AberdeenJapanEqu JEQ
AberdeenSingapore SGF
AlexandriaRealEst ARE
AllianzGIDivIncm ACV
Allstate
ALL
AlonUSAPartners ALDW
Ameren
AEE
AEP
AEP
AmEqtyLf
AEL
AmericanExpress AXP
Anthem
ANTM
ApolloGlMgmtPfdA APOpA
25.37
12.42
9.27
12.54
126.62
22.42
100.31
13.97
63.01
75.19
31.05
96.90
220.75
26.44
0.4
1.3
0.1
0.8
0.3
0.5
0.1
-1.8
1.2
2.0
1.5
-1.0
0.5
0.1
52-Wk %
Sym Hi/Lo Chg Stock
AquaAmerica WTR
Aquantia
AQ
AristaNetworks ANET
ArtisanPtrsAsset APAM
AspenAerogels ASPN
BBX CapitalA BBX
BP
BP
BlkRkMuniIncm BBF
BlkRkRscs&Comm BCX
BlkRkSci&Tech BST
Boeing
BA
CBRE Group
CBG
CNA Fin
CNA
CVR Energy
CVI
CVR Refining CVRR
CanNaturalRes CNQ
Canon
CAJ
36.33
12.05
214.99
36.88
4.97
8.92
41.55
15.59
9.16
27.23
267.28
41.25
55.62
32.42
13.00
36.79
38.19
0.6
14.6
1.4
-0.4
-0.8
7.9
0.2
0.2
0.3
-1.1
0.8
0.3
-0.3
-0.1
1.2
-1.5
1.3
52-Wk %
Sym Hi/Lo Chg
Carters
CRI
CatchMarkTimber CTT
ChathamLodging CLDT
ChinaFund
CHN
ChoiceHotels CHH
Cigna
CI
CLSelPrTechGrFd STK
ConchoRscs
CXO
ConocoPhillips COP
ConEd
ED
CubeSmart
CUBE
CurtissWright CW
DCT Industrial DCT
Danaher
DHR
Deere
DE
DelekUS
DK
EPAM Systems EPAM
Net
Sym Close Chg
Stock
NYSE AMER
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
52-Wk %
Sym Hi/Lo Chg Stock
Net
Sym Close Chg
MYL 36.67 -0.72
-0.32 DollarTree DLTR 93.62 0.23 Mylan
ETFC 43.62 -0.48 NXP Semi NXPI 116.66 -0.06
0.33 E*TRADE
NDAQ 72.02 0.05
0.15 s EXACT Sci EXAS 60.50 2.22 Nasdaq
-0.86 EastWestBancorp EWBC 57.64 -1.54 NatlInstruments NATI 45.22 -0.47
EBAY 37.41 0.04 NetApp
NTAP 44.65 -0.35
-0.02 eBay
NTES 306.59 -3.10
0.08 ElbitSystems ESLT 147.80 -0.46 Netease
NFLX 195.89 -4.24
-0.07 ElectronicArts EA 111.70 -0.76 Netflix
EQIX 488.06 -3.56 s Neurocrine NBIX 74.53 0.02
-1.35 s Equinix
ERIC 6.48 -0.03 NewsCorp B NWS 14.40 -0.15
-0.36 Ericsson
EXEL 26.59 -0.79 s NewsCorp A NWSA 14.15 -0.13
-0.25 Exelixis
EXPE119.61 -3.37 Nordson
NDSN 126.94 0.22
0.63 Expedia
-0.49 s ExpeditorsIntl EXPD 62.04 4.55 NorthernTrust NTRS 92.41 -1.81
ExpressScripts
ESRX
60.60
-0.02
NorwegianCruise NCLH 55.36 0.10
0.07
NVDA 212.03 2.40
-0.44 F5Networks FFIV 120.13 -0.07 s NVIDIA
FB 180.25 0.08 OReillyAuto ORLY 208.11 -0.75
1.14 Facebook
FAST 48.04 -0.02 OldDomFreight ODFL 121.22 0.58
0.04 Fastenal
ON 21.61 0.20
-0.08 FifthThirdBncp FITB 28.45 -0.79 s ON Semi
OTEX 33.73 -0.52
0.10 FirstSolar FSLR 60.96 -0.51 OpenText
FISV 126.97 -0.80 PTC
PTC 65.13 -0.37
-0.62 Fiserv
FLEX 18.23 -0.21 Paccar
PCAR 70.48 -0.13
-1.26 Flex
FlirSystems FLIR 47.27 0.21 PacWestBancorp PACW 45.47 -1.81
Fortinet
FTNT 39.09 -0.16 Paychex
PAYX 64.27 0.27
Gaming&Leisure GLPI 36.96 0.27 s PayPal
PYPL 74.41 -0.33
0.14 Garmin
GRMN 59.21 -0.09 People'sUtdFin PBCT 18.05 -0.37
0.73 GileadSciences GILD 73.21 0.83 PilgrimPride PPC 30.46 -0.06
-1.40 Goodyear
GT 29.59 0.30 Priceline
PCLN 1645.72-257.28
0.66 Grifols
GRFS 23.28 -0.30 Qiagen
QGEN 30.68 -2.77
0.09 GpoFinGalicia GGAL 52.94 -1.50 s
Qorvo
QRVO 78.46 -0.03
0.08 HD Supply HDS 36.34 -0.21
Qualcomm QCOM 64.10 1.58
0.12 Hasbro
HAS 89.89 -1.12 RandgoldRscs GOLD 91.15 -0.86
0.02 HenrySchein HSIC 71.01 0.97
RegenPharm REGN 404.39 -2.24
1.48 Hologic
HOLX 39.50 0.44 RossStores ROST 64.79 0.65
1.96 JBHunt
JBHT 106.65 -1.19 RoyalGold RGLD 89.05 0.25
-1.06 HuntingtonBcshs HBAN 13.40 -0.38
Ryanair
RYAAY 111.80 -1.24
-1.00 IAC/InterActive IAC 128.64 -1.33
SBA Comm SBAC 165.65 1.23
7.43 IdexxLab
IDXX 150.08 -1.41 s SEI Investments SEIC 65.13 -0.62
9.71 IHSMarkit INFO 43.43 -0.18
Sina
SINA 103.00 -7.03
0.51 INC Research INCR 58.60 -0.40
SS&C Tech SSNC 40.60 -0.17
2.51 s IPG Photonics IPGP 221.43 2.18
SVB Fin
SIVB 215.06 -2.63
-0.25 IRSA Prop IRCP 56.35 0.60
ScrippsNetworks SNI 80.39 0.26
-4.05 IcahnEnterprises IEP 58.50 -0.70
Seagate
STX 37.12 -0.34
-1.05 Icon
ICLR 121.39 -1.49 SeattleGenetics SGEN 58.45 -0.31
2.68 Illumina
ILMN 211.74 2.55 Shire
SHPG 144.69 -2.45
-0.38 Incyte
INCY 108.14 2.71 SignatureBank SBNY 126.80 -3.52
0.56 Intel
INTC 46.78 0.08 SiriusXM
SIRI 5.34 -0.01
0.14 InteractiveBrkrs IBKR 54.09 -0.27 Skyworks
SWKS111.19 -5.14
0.05 Intuit
INTU 152.51 -0.17 Splunk
SPLK 68.00 -0.41
-0.25 s IntuitiveSurgical ISRG 391.04 6.21
Starbucks SBUX 57.22 0.65
-0.42 IonisPharma IONS 52.30 -1.95
SteelDynamics STLD 37.39 -0.22
1.42 JD.com
JD 39.79 0.78 Stericycle SRCL 67.16 -0.10
-1.06 s JackHenry JKHY112.56 0.76
Symantec SYMC 28.68 -0.22
-1.50 JazzPharma JAZZ 132.82 -7.43 s
Synopsys SNPS 86.91 -0.31
-1.90 JetBlue
JBLU 18.92 -0.40 TD Ameritrade AMTD 48.49 -0.75
0.81 JunoTherap JUNO 55.98 -0.47
TESARO
TSRO 112.08 -0.42
0.56 KLA Tencor KLAC 107.50 1.99
T-MobileUS TMUS 55.36 -0.18
1.95 KraftHeinz KHC 78.18 1.18
TRowePrice TROW 93.76 -1.19
0.29 LKQ
LKQ 36.97 -0.66 TakeTwoSoftware TTWO106.39 -0.61
-6.20 LamResearch LRCX 209.19 2.52
Tesla
TSLA 306.05 3.27
-0.15 LamarAdvertising LAMR 77.21 2.30 s
TexasInstruments TXN 98.40 -0.14
-1.17 LibertyBroadbandC LBRDK 89.51 -1.04
TractorSupply TSCO 59.14 -0.48
-1.85 LibertyBroadbandA LBRDA 88.72 -0.81
Trimble
TRMB 40.48 -0.17
1.42 LibertyGlobal A LBTYA 30.54 -0.13
21stCenturyFoxA FOXA 27.75 0.30
-0.61 LibertyGlobal C LBTYK 29.68 0.04
21stCenturyFoxB FOX 27.04 0.42
0.67 LibertyLiLAC C LILAK 21.76 -0.21
UltaBeauty ULTA 198.01 -3.32
0.01 LibertyLiLAC A LILA 21.87 -0.02
UltimateSoftware ULTI 196.13 -5.75
-0.15 LibertyQVC A QVCA 21.55 -0.69
s UniversalDisplay OLED 167.58 4.17
-0.25 LibertyVenturesA LVNTA 57.44 -0.95
VEON
VEON 3.78 0.04
-1.02 LibertyFormOne A FWONA 36.39 -0.53
VeriSign
VRSN 109.10 -0.75
0.69 LibertyFormOne C FWONK 38.01 -0.71 s
VeriskAnalytics VRSK 92.29 1.19
0.28 LibertyBraves A BATRA 22.56 -0.10
VertxPharm VRTX 151.31 2.33
0.21 LibertyBraves C BATRK 22.72 -0.10
Viacom B VIAB 24.78 0.60
-5.39 LibertySirius A LSXMA 41.14 0.20
Viacom A VIA 30.25 0.45
-0.22 LibertySirius C LSXMK 41.17 0.19
Vodafone VOD 28.94 -0.27
4.98 LincolnElectric LECO 88.25 -1.24
WPP
WPPGY 85.52 -1.57
-0.40 LogitechIntl LOGI 36.37 -0.12
WalgreensBoots WBA 67.92 1.98
0.30 LogMeIn
LOGM121.70 -3.30 Weibo
WB 99.28 0.07
-0.01 lululemon
LULU 60.24 -1.55 WesternDigital WDC 86.09 -1.76
0.14 MKS Instrum MKSI 106.55 -0.95
WillisTwrsWatson WLTW 161.60 0.41
1.47 MarketAxess MKTX 178.01 -1.61
Workday
WDAY 108.53 0.11
-0.13 s Marriott
MAR 120.89 -1.09 WynnResorts WYNN 152.19 0.80
-0.67 MarvellTech MRVL 20.13 -0.07 s
Xilinx
XLNX 73.91 -0.59
0.85 s MatchGroup MTCH 26.90 -0.85
Yandex
YNDX 32.58 -0.97
-1.57 MaximIntProducts MXIM 54.71 -0.08
ZebraTech ZBRA 109.31 -6.48
-0.89 MelcoResorts MLCO 25.01 -0.84
Zillow A
ZG 40.22 -0.75
-0.47 MercadoLibre MELI 265.63 -2.90
Zillow C
Z
39.97 -0.85
-0.52 s MicrochipTech MCHP 91.44 -3.92
ZionsBancorp ZION 44.88 -1.57
1.23 MicronTech MU 43.95 0.70
-0.01 Microsemi MSCC 53.95 -1.21
-0.75 Microsoft
MSFT 84.27 -0.20
0.51 Middleby
MIDD119.05 -0.91 CheniereEnergy LNG 50.19 -0.16
-1.89 Momo
MOMO 28.26 -1.06 CheniereEnerPtrs CQP 28.70 0.02
0.23 Mondelez MDLZ 41.21 0.79 CheniereEnHldgs CQH 27.14 0.12
0.20 MonsterBeverage MNST 57.92 0.40 ImperialOil IMO 31.34 -0.04
New Highs and Lows | WSJ.com/newhighs
Stock
Stock
100.24
13.24
23.27
21.48
76.41
206.45
24.15
147.77
54.07
87.70
28.84
120.54
60.24
93.29
136.69
28.69
101.55
-0.4
1.5
0.4
0.6
...
0.2
0.5
0.1
-0.4
1.6
0.9
-0.2
0.5
0.6
0.3
0.3
0.8
52-Wk %
Sym Hi/Lo Chg Stock
EtnVncEqtyInco EOI
Ecopetrol
EC
EquityResdntl EQR
EversourceEner ES
ExtraSpaceSt EXR
FactSet
FDS
FairIsaac
FICO
FidelityNatlFin FNF
FirstAmerFin FAF
FirstIndRlty
FR
GTT Comm
GTT
Gallagher
AJG
GasLog
GLOG
GenAmInv
GAM
GoDaddy
GDDY
GraniteConstr GVA
GreatPlainsEner GXP
GuggStratOpps GOF
Haemonetic
HAE
HanoverIns
THG
HighlandFROpps HFRO
Hilton
HLT
HollyFrontier
HFC
HondaMotor
HMC
Honeywell
HON
HoraceMannEdu HMN
14.52
12.00
69.77
64.61
87.31
191.88
153.47
38.55
56.40
31.87
37.35
64.45
19.20
36.59
49.36
67.20
33.94
21.51
52.82
107.12
15.71
73.76
42.47
33.59
147.04
45.70
-0.4
1.1
0.5
1.3
-0.4
0.2
0.9
-0.9
-0.5
0.2
0.3
-0.7
1.3
...
2.9
1.1
1.0
0.3
10.0
1.1
0.9
-1.1
0.6
...
0.9
0.8
52-Wk %
Sym Hi/Lo Chg
DR Horton
DHI
HuntingtonIngalls HII
IDACORP
IDA
IONGeophysical IO
Insperity
NSP
IntlFlavors
IFF
JaggedPeakEner JAG
JapanSmlCap JOF
JonesLangLaSalle JLL
KB Home
KBH
KeysightTechs KEYS
KosmosEnergy KOS
Kyocera
KYO
LasVegasSands LVS
LibertyAllStar USA
LibertyProperty LPT
LiveNationEnt LYV
Loews
L
Luxfer
LXFR
MI Homes
MHO
MSCI
MSCI
MainStreetCap MAIN
Manitowoc
MTW
Manpower
MAN
MarathonPetrol MPC
45.50
238.16
95.10
14.90
105.10
153.97
15.20
13.38
144.69
28.55
45.65
8.62
71.24
68.41
6.23
44.55
45.70
49.99
13.84
34.39
128.00
41.79
10.53
126.40
63.12
Continued on Page B9
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0.2
-1.2
1.3
3.6
-1.1
2.4
-0.5
1.4
2.5
1.5
0.7
0.7
3.0
1.2
...
0.9
2.2
-0.4
5.2
-1.5
-1.3
0.9
-1.9
...
1.2
(800) 366-3975
sales.realestate@wsj.com
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B9
NY
NEW HIGHS AND LOWS
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk % Stock
Sym Hi/Lo Chg VirtusGlbMulti VGI
18.98 1.5 PitneyBowes
52-Wk %
Sym Hi/Lo Chg Stock
Continued From Page B8
Stock
MatadorResources MTDR
McDonalds
MCD
MichaelKors
KORS
MonmouthRealEst MNR
NRG Energy
NRG
NRG Yield A
NYLD.A
NatlStorage
NSA
NaviosMaritimPf NMpG
NaviosMariPfdH NMpH
NexPointResidentl NXRT
NiSource
NI
NuvEMDebt2022 JEMD
PBF Energy
PBF
PembinaPipeline PBA
Penumbra
PEN
PortlandGenElec POR
PrefApartment APTS
Primerica
PRI
PrincipalFin
PFG
Progressive
PGR
Prologis
PLD
PulteGroup
PHM
QTS Realty
QTS
QuakerChemical KWR
QuintilesIMS
Q
Rayonier
RYN
RiverNorthMktPfA RMPLp
RoperTech
ROP
RoyalCaribbean RCL
RoyceValue
RVT
SabineRoyalty SBR
Salesforce.com CRM
ScottsMiracleGro SMG
SempraEnergy SRE
ServiceCorp
SCI
SimonPropPfdJ SPGpJ
SolarisOilfield SOI
Sony
SNE
SpiritAeroSys SPR
StanleyBlackDeckUn SWP
StanleyBlackDck SWK
StellusCap5.75Nt22 SCA
SunCommunities SUI
SuncorEnergy SU
TaiwanFund
TWN
TaiwanSemi
TSM
TeledyneTech TDY
Teradyne
TER
Total
TOT
ToyotaMotor TM
TrancntlRlty
TCI
Tri-Continental TY
TritonIntl
TRTN
UnitedRentals URI
UnumGroup
UNM
Visa
V
VailResorts
MTN
VirtusGlbDiv&Incm ZTR
29.48
170.82
55.25
17.45
28.67
19.59
26.50
19.99
18.89
27.86
27.61
10.20
32.05
35.95
104.75
48.56
21.13
89.70
69.95
51.00
67.10
30.73
60.22
164.01
110.67
31.23
25.43
261.37
133.75
16.13
43.75
105.00
102.50
120.86
36.56
77.98
18.12
46.03
84.75
123.60
168.25
25.64
93.84
36.10
21.83
42.71
184.63
43.65
56.98
127.50
30.51
26.25
41.43
149.45
53.36
112.47
237.77
13.68
0.5
0.4
...
...
0.6
2.3
1.1
3.1
6.5
-2.6
1.0
0.5
1.4
1.1
...
1.6
0.3
-0.2
-0.2
0.6
...
-0.2
-0.8
0.1
-0.3
0.8
0.6
0.8
3.1
-0.9
0.3
0.3
3.3
1.4
-0.4
4.4
7.7
0.3
-0.9
-0.6
1.0
...
-0.1
1.0
0.5
0.2
0.4
0.2
-0.2
1.5
1.1
-0.7
0.3
-0.6
-0.7
0.2
-0.4
0.4
PBI
VMware
VMW 121.14 1.0 PitneyBowesNt43 PBIpB
8.94 6.8 PrestigeBrands PBH
Vonage
VG
71.30 1.9 RR Donnelley RRD
W.P.Carey
WPC
Watsco
WSO 167.71 0.9 RubiconProject RUBI
WeightWatchers WTW 54.47 13.5 SafetyIncome SAFE
91.71 6.5 SeaWorldEnt SEAS
WestlakeChem WLK
WW Ent
WWE 27.29 1.4 Smucker
SJM
74.87 -0.3 StandardMotor SMP
XPO Logistics XPO
81.25 1.4 TPG Pace
YumBrands
YUM
TPGH
TwoHarbors
TWO
Veritiv
VRTV
VoyaPrimeRate PPR
10.31 1.5 WashingtonPrime WPG
AES
AES
11.25 0.8 WideOpenWest WOW
AMC Ent
AMC
78.90 -1.6 XeriumTech
AdvanceAuto AAP
XRM
62.17 -2.7
AlaskaAir
ALK
5.80 -6.7
AmplifySnack BETR
8.74 -2.0
AshfordHospPrime AHP
5.02 -4.2 ALPS EqSecWgh EQL
Barnes&NobleEduc BNED
3.03 -21.4 ARKWebx.0ETF ARKW
BlueApron
APRN
8.78 -14.4 AdvShNewTech FNG
BrookdaleSrLiving BKD
7.45 -2.6 S&PVEQTOR VQT
Build-A-Bear
BBW
5.48 1.3 CSOPFTSEChinaA50 AFTY
CBL Assoc
CBL
CNX Coal
CNXC 13.85 0.8 CSOPMSCIChinaAInt CNHX
8.45 -0.6 ClearSharesOCIO OCIO
ChannelAdvisor ECOM
6.78 -0.3 DiamondHillVal DHVW
Crawford A
CRD.A
9.04 -1.1 DirexCSI300CnABl2 CHAU
DeanFoods
DF
0.93 ... DirexChinaBl3 YINN
DoverDowns
DDE
1.20 -3.2 DirexFinlBull3 FAS
EldoradoGold EGO
EnvisionHlthcr EVHC 25.44 -4.2 DirexJapanBl3 JPNL
Evertec
EVTC 14.05 -2.1 DirexS&P500Bl3 SPXL
10.35 0.9 DirexS&P500Bl1.25 LLSP
EvolentHealth EVH
28.60 -9.0 DirexSemiBl3 SOXL
Fabrinet
FN
9.31 -0.9 DirexTechBull3 TECL
FT SrFR2022 FIV
28.85 -1.4 EmgMktInternetEcom EMQQ
FootLocker
FL
6.19 -7.6 ETFMG PrimeMob IPAY
GNC Holdings GNC
17.07 -4.0 ETFMG VideoGame GAMR
GameStop
GME
49.65 1.7 FidelityMSCIIT FTEC
GeneralMills
GIS
35.70 -0.9 FidelityMomFactor FDMO
GlaxoSmithKline GSK
GranitePointMtg GPMT 17.34 -2.2 FidelityValFactor FVAL
44.54 -0.8 FT FinlsAlpDx FXO
HarleyDavidson HOG
18.53 -2.9 FT GlbEngg
Interpublic
IPG
FLM
15.54 -2.3 FT TechAlphaDEX FXL
Intrexon
XON
KimberlyClark KMB 109.67 1.9 FT USEquityOpp FPX
5.30 -2.7 FrankFTSECanada FLCA
KingswayFin
KFS
LSC Comm
LKSD 14.13 -5.6 FrankFTSEChina FLCH
2.36 -2.1 FrankFTSEJapan FLJP
Luby's
LUB
17.41 -3.5 FrankFTSEJapanHdg FLJH
Macy's
M
19.00 -35.5 FrankFTSEMexico FLMX
Mallinckrodt
MNK
MosaicAcqnUn MOSC.U 10.05 0.2 FrankUSLowVol FLLV
29.96 -1.0 GlbX ChinaEner CHIE
NCR
NCR
9.41 -12.0 GlbX GuruIndex GURU
Netshoes
NETS
0.27 -10.0 GlbXLithium&Batt LIT
NewIrelandFundRt IRLrw
38.14 -2.4 GlbXMSCIArgentina ARGT
Nordstrom
JWN
8.00 -5.3 GlbXSciBetaAsiaXJ SCIX
OFGBancorp
OFG
65.45 -1.5 GlbXSciBetaJapan SCIJ
Omnicom
OMC
4.93 -6.4 GSActiveBetaEM GEM
PandoraMedia P
2.35 -6.3 GSActiveBetaJapan GSJY
PenneyJC
JCP
14.87 0.1 GSActiveBetaUSLC GSLC
PennyMacTr
PMT
NYSE lows - 63
10.60 -2.9
24.87 -0.7
42.13 -1.3
7.86 -2.7
1.83 -5.0
17.27 -3.4
10.79 1.5
99.57 1.8
41.63 -1.7
9.70 -1.3
15.21 0.7
24.70 -20.3
5.08 0.2
6.71 2.2
12.20 -1.9
4.07 -2.6
NYSE Arca highs - 170
67.80
43.75
23.22
153.35
18.25
29.84
26.29
30.88
29.42
34.79
62.48
75.93
41.90
34.71
163.66
111.45
38.16
34.19
46.34
50.25
30.87
31.35
30.62
59.68
51.66
66.44
25.09
25.60
26.25
26.20
25.18
29.37
11.94
28.99
40.10
33.30
26.36
32.38
35.16
33.38
51.53
...
-0.6
-0.4
0.6
0.7
1.2
0.2
-0.2
1.1
1.8
-2.4
2.5
-0.1
0.1
-0.3
0.2
-0.4
-1.0
...
...
-0.2
-0.2
-0.8
-0.4
...
-0.4
-0.4
0.2
0.6
0.8
0.6
0.2
0.8
-0.6
1.2
-1.7
0.3
1.0
-0.7
1.0
-0.1
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Data provided by
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Tuesday, November 7, 2017
Net YTD
Net YTD
NAV Chg %Ret Fund
American Century Inv
45.16 +0.06
Ultra
American Funds Cl A
31.97 -0.13
AmcpA p
AMutlA p 41.22 +0.07
27.56 -0.02
BalA p
12.97
...
BondA p
63.02 +0.03
CapIBA p
CapWGrA 52.49 -0.04
57.36 -0.07
EupacA p
63.95 -0.14
FdInvA p
51.78 -0.19
GwthA p
10.45 -0.01
HI TrA p
41.32 +0.01
ICAA p
23.49 -0.02
IncoA p
45.18 -0.11
N PerA p
47.73 -0.13
NEcoA p
NwWrldA 66.71 -0.24
56.54 -0.37
SmCpA p
13.07 +0.03
TxExA p
45.57 -0.04
WshA p
NAV Chg %Ret Fund
US CoreEq2
29.5 AggBdInst 10.93 +0.01 4.3 US Small
CorBdInst 11.29 +0.01 4.7 US SmCpVal
19.1 BlackRock Funds A
US TgdVal
13.5 GlblAlloc p 20.36 -0.03 12.0 USLgVa
Baird Funds
12.8
3.5
12.0
21.6
29.8
19.7
23.2
6.6
15.4
10.8
27.9
32.8
29.7
23.0
5.3
15.5
BlackRock Funds Inst
23.10 -0.08
EqtyDivd
20.49 -0.03
GlblAlloc
7.85
...
HiYldBd
StratIncOpptyIns 9.96 -0.01
Bridge Builder Trust
10.22
...
CoreBond
Dimensional Fds
...
5GlbFxdInc 11.04
EmgMktVa 30.42 -0.22
EmMktCorEq 22.50 -0.12
IntlCoreEq 14.27 -0.05
20.08 -0.04
IntlVal
21.54 -0.10
IntSmCo
23.49 -0.08
IntSmVa
US CoreEq1 22.02 -0.08
Net YTD
NAV Chg %Ret
20.87
35.80
38.33
24.79
38.98
-0.12
-0.48
-0.65
-0.36
-0.12
13.4
6.5
3.0
4.1
12.7
Dodge & Cox
13.2
12.2
7.8
4.3
4.1
2.4
28.8
31.5
24.6
22.6
25.9
24.2
15.6
GuggChinaAllCap YAO
GuggChinaTech CQQQ
GuggDefEqty DEF
GuggS&P500PureGr RPG
GuggS&P400PureVal RFV
GuggInsider
NFO
GuggS&P500EWRlEst EWRE
Inspire100ETF BIBL
iShCoreDivGrowth DGRO
iShCoreMSCIPacific IPAC
iShCoreS&P500ETF IVV
iShS&PTotlUSStkMkt ITOT
iShCurrHdMSCIJapan HEWJ
iShUS Finls
IYF
iShU.S.Technology IYW
iShEdgeMSCIIntSize ISZE
iShEdgeMSCIMinJapn JPMV
iShEdgeMSCIMultif ACWF
iShEdgeMSCIMultUSA LRGF
iShJPX-Nikkei400 JPXN
iShMSCIAllPeruCap EPU
iShMSCIBRICETF BKF
iShMSCIGloblEnProd FILL
iShMSCIJapanETF EWJ
iShMSCIJapanSC SCJ
iShMSCIKLD400Soc DSI
iShMSCIWorldETF URTH
iShMorningstarLC JKD
iShMornLCGrowth JKE
iShRussell1000Gwth IWF
iShRussell1000ETF IWB
iShRussell3000ETF IWV
iShRussellMid-Cap IWR
iShRussellTop200Gr IWY
iShRussellTop200 IWL
iShS&P100
OEF
iShS&P500Growth IVW
iShGlobalTechETF IXN
iShDowJonesUS IYY
iShChinaLC
FXI
JanusVelTailLC TRSK
HancockLC
JHML
HancockTech JHMT
JPMDivRetEurCur JPEH
JPM DivRetGlEq JPGE
JPM DivRetIntl JPIH
KraneBoseraChinaA KBA
NatixisSeeyondIntl MVIN
OShFTSEAsiaPacQlty OASI
OppenheimFclsSect RWW
PwrShUsRealEst PSR
PwrShDynSemicon PSI
PwrShFTSE US1000 PRF
PwrShRussMC EW EQWM
PwrShRussTop200 EQWL
PwrShRussTop200G PXLG
PwrShS&P500LoVol SPLV
PwrShS&P500xRate XRLV
PwrShS&P500Mom SPMO
PwrShS&P400LowVol XMLV
Balanced
GblStock
Income
Intl Stk
Stock
109.08 -0.61 9.0
13.93 -0.10 17.0
13.85
... 4.2
46.54 -0.19 22.2
201.57 -1.66 12.5
DoubleLine Funds
NA
... NA
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.54 -0.21 33.0
Federated Instl
StraValDivIS 6.39 +0.02 11.2
Fidelity
500IdxInst 90.70 -0.01 17.6
500IdxInstPrem 90.70 -0.01 17.6
500IdxPrem 90.69 -0.02 17.6
35.70
62.66
45.52
104.18
66.10
60.89
28.14
25.64
33.45
59.50
261.12
59.40
33.49
116.06
164.15
27.81
67.85
30.19
31.13
64.72
42.76
44.88
21.45
59.69
77.46
95.81
86.43
155.64
153.00
131.17
144.35
153.66
201.99
71.38
59.70
114.94
149.82
155.99
129.87
46.92
30.44
33.79
41.70
29.45
61.69
30.53
34.91
46.12
32.08
67.98
82.76
54.44
109.43
46.16
51.20
44.75
46.94
32.76
33.76
45.43
0.1
-0.2
-0.1
-0.2
-1.2
...
0.9
0.1
0.1
0.6
...
-0.2
0.9
-0.8
...
0.3
0.8
-0.4
...
0.8
-1.5
-0.7
0.1
0.8
0.3
-0.1
-0.2
0.3
-0.1
...
-0.1
-0.2
-0.3
0.1
-0.1
...
0.1
0.1
-0.2
0.6
0.5
-0.1
-0.3
0.1
-0.1
0.5
0.6
0.1
1.6
-1.1
0.8
-0.5
-0.1
0.6
...
-0.3
0.4
0.3
-1.0
...
52-Wk %
Sym Hi/Lo Chg Stock
ProShS&P500xEner SPXE
ProShShtVIXST SVXY
ProShrUltraDow30 DDM
ProShXinhuaChina25 XPP
ProShrUltraFnl UYG
ProShrUltraJapan EZJ
ProShrUltraQQQ QLD
ProShrUltraRE URE
ProShrUltraS&P SSO
ProShrUlTech ROM
ProShrUltraUtil UPW
ProShUltDow30 UDOW
ProShUltS&P500 UPRO
RealEstSectorSPDR XLRE
RivFrDynUSDiv RFDA
SPDRMFSSysValueEqu SYV
SPDRMSCIACWIIMI ACIM
SPDRMSCIUSAStrat QUS
SPDRS&P500Growth SPYG
SPDR Ptf TSM SPTM
SPDRSSgAMultiAsset RLY
SchwabFundUSBrd FNDB
SchwabFundUSLrgCo FNDX
Schwab1000Index SCHK
SchwabUS BrdMkt SCHB
SchwabUS LC SCHX
SchwabUS LC Grw SCHG
SchwabUS MC SCHM
SPDR DJIA Tr DIA
SPDR S&P 500 SPY
SPDR SP China GXC
SPDR SP EmAsPac GMF
SPDR S&P Semi XSD
TechSelectSector XLK
UBS FIEnhLCGrw FBGX
US3xOilFd
USOU
VanEckCSI300 PEK
VanEckGaming BJK
VanEckOilRefin CRAK
VanEckSemiconduc SMH
VanEckUranium NLR
VangdInfoTech VGT
VangdFTSE Pac VPL
VangdGrowth VUG
VangdLC
VV
VangdMegaCap MGC
VangdMegaGrwth MGK
VangdS&P500 VOO
VangdS&P500 Grw VOOG
VangdTotalStk VTI
VangdTotlWrld VT
WisdTrCBOES&P500 PUTW
WisdTrEMxSOE XSOE
WisdTrGlbxUSDiv DXUS
WisdTrJpnCapGds DXJC
WisdTrJpnHdgQuDiv JHDG
WisdTrJapanHdg DXJ
WisdTrJpnHlthCare DXJH
WisdTrJapanSC DFJ
Net YTD
NAV Chg %Ret Fund
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
Fund
52-Wk %
Sym Hi/Lo Chg Stock
ExtMktIdxPrem r
IntlIdxPrem r
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
62.30
43.35
13.90
75.10
75.08
11.63
Fidelity Advisor I
NwInsghtI 33.48
Fidelity Freedom
16.76
FF2020
14.50
FF2025
18.17
FF2030
Freedom2020 K 16.76
Freedom2025 K 14.50
Freedom2030 K 18.18
Freedom2035 K 15.24
Freedom2040 K 10.71
Fidelity Invest
23.73
Balanc
87.87
BluCh
127.15
Contra
127.15
ContraK
10.31
CpInc r
41.52
DivIntl
182.61
GroCo
GrowCoK 182.57
7.95
InvGB
11.32
InvGrBd
52.77
LowP r
LowPriStkK r 52.74
106.36
MagIn
108.51
OTC
23.25
Puritn
SrsEmrgMkt 21.56
SrsGroCoRetail 17.94
SrsIntlGrw 16.27
10.85
SrsIntlVal
TotalBond 10.70
Fidelity Selects
Biotech r 218.09
First Eagle Funds
-0.53
-0.07
-0.01
-0.12
-0.13
...
13.5
22.8
17.6
16.9
16.9
3.4
-0.12 25.4
-0.03
-0.03
-0.04
-0.03
-0.03
-0.03
-0.04
-0.03
13.6
14.5
17.0
NS
NS
NS
NS
NS
-0.04
-0.17
-0.41
-0.41
-0.04
-0.08
-0.42
-0.42
...
...
-0.19
-0.19
-0.38
-0.29
-0.05
-0.09
-0.04
-0.03
-0.02
...
14.4
33.1
30.0
30.1
10.8
24.7
33.5
33.6
3.8
4.3
15.1
15.3
23.3
36.2
16.5
37.3
34.3
27.1
18.4
4.2
-2.02 25.3
54.15
109.90
119.74
83.83
120.54
127.85
71.82
67.00
102.82
89.81
52.11
81.42
127.64
33.61
30.77
64.16
77.50
74.77
32.38
32.24
25.94
35.76
35.94
25.47
62.70
61.96
68.81
51.59
235.88
259.35
108.93
104.74
73.30
63.72
214.14
39.72
48.25
43.71
29.34
104.35
53.90
165.56
72.24
137.87
119.09
89.19
109.02
238.22
134.45
133.33
72.76
29.76
31.21
27.10
29.13
29.31
59.17
36.22
78.15
0.2
-0.5
0.1
1.1
-1.7
1.8
0.1
1.5
...
-0.1
2.2
0.1
-0.1
0.9
-0.5
-0.5
0.1
...
...
-0.1
-0.3
-0.1
-0.1
-0.1
-0.2
-0.1
-0.1
-0.5
...
-0.1
0.3
-0.1
-0.9
...
-0.3
-0.2
0.8
0.3
-0.6
-0.2
0.4
...
0.3
0.1
...
...
0.1
...
...
-0.2
-0.2
0.2
-0.3
...
1.1
0.8
1.0
0.3
0.3
WisdTrUSTotalEarn EXT
XtrkrsHarvCSI300 ASHR
XtrkrsJpnJPXNik400 JPN
XtrkrsMSCIAllChina CN
XtrkrsMSCIAWxUS DBAW
XtrkrsMSCIAPxJapan DBAP
XtrkrsMSCIEAFE DBEF
XtrkrsMSCIEM DBEM
XtrkrsMSCIJapan DBJP
XtrkrsRussell1000 DEUS
92.23
31.05
29.25
37.70
28.28
29.32
32.31
24.39
44.07
31.06
0.4
0.6
1.0
0.7
-0.2
0.6
-0.2
-0.1
0.9
-0.2
NYSE Arca lows - 40
AIPoweredEquity AIEQ
iPathS&P500VIXST VXX
DBCrudeOilDblShrt DTO
DirexCSI300CnA CHAD
DirexChinaBr3 YANG
DirexFinlBear3 FAZ
DirexS&P500Br3 SPXS
DirexS&P500Br1 SPDN
DirexSemiBear3 SOXS
DirexTechBear3 TECS
FrankFTSEAustralia FLAU
FrankFTSEBrazil FLBR
FrankFTSECanada FLCA
FrankFTSEEurope FLEE
FrankFTSEGermany FLGR
FrankFTSE SKorea FLKR
FrankFTSE UK FLGB
GuggBS2025HYCpBd BSJP
NuShEnhYd1-5Y NUSA
ProShShtDow30 DOG
ProShShXinhuaCh25 YXI
ProShShtFinls SEF
ProShShortQQQ PSQ
ProShShtRE
REK
ProShShrtS&P500 SH
ProShUltVIXST UVXY
ProShUltShtDow30 SDOW
ProShUltProShS&P SPXU
ProShUltShDow30 DXD
ProShXinhuaChina25 FXP
ProShrUSFnl
SKF
ProShrUS MSCI Jpn EWV
ProShUltShtQQQ QID
ProShrUSRlEst SRS
ProShUltShtS&P500 SDS
ProShrUSTech REW
ProShrUSUtil SDP
ProShsVIXSTFut VIXY
USAA USA SC Val USVM
VelocityShLIBOR DLBR
24.37
33.11
97.00
31.53
6.12
12.97
33.09
31.64
14.62
7.10
25.07
24.48
24.93
24.99
25.41
25.60
25.06
24.90
24.92
15.71
19.45
11.96
36.01
15.81
31.18
14.56
22.78
12.56
9.64
17.40
22.42
27.07
13.75
29.10
43.86
16.48
23.29
27.49
49.23
23.07
-1.1
0.5
0.5
-0.7
-1.9
2.4
0.2
0.1
0.3
-0.4
...
-1.0
-0.4
-0.6
-0.4
-1.2
...
-0.1
...
0.1
-0.6
1.1
-0.1
-0.7
0.1
1.1
-0.1
0.2
-0.1
-1.2
1.8
-1.3
-0.1
-1.5
0.1
0.3
-2.3
0.6
-0.8
-0.6
NYSE American highs - 4
CloughGlbEqFd GLQ
NE Realty
NEN
PowerREIT PfdA PWpA
SparkNetworks LOVw
Net YTD
NAV Chg %Ret Fund
GlbA
52-Wk %
Sym Hi/Lo Chg Stock
13.92
74.00
26.55
12.50
0.1
1.9
0.6
19.6
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
FT Nasd100Tech QTEC
FONE
NYSE American lows - 5 FTFT NasdSmartphone
RiverFrDynAP RFAP
2.23 -3.4 GDSHoldings GDS
Biotime
BTX
8.65 1.2 GRAVITY
Cohen
COHN
GRVY
Gabelli6%CumPfdA GLUpA 47.33 0.4 GSV Capital
GSVC
0.37 -4.8 GilatSatellite
RegionalHlthProp RHE
GILT
1.40 -3.3 GldstoneComrc pf GOODO
UnvlSecInstr
UUU
GladstoneInvt GAIN
GlbPartnerAcqnWt GPACW
GlbXConsciousCos KRMA
Aegion
AEGN 27.19 -2.6
GlbXFinTech
FINX
AirTransportSvcs ATSG 26.75 -0.1
GlbXMillThematic MILN
AlignTech
ALGN 246.84 0.8
GlbX Robotics&AI BOTZ
AltairEngg
ALTR 19.95 2.8
GlbXS&P500Catholic CATH
Amazon.com AMZN1130.60 0.2
GolarLNG PfdA GMLPP
Apple
AAPL 175.25 0.3
H&E Equipment HEES
ArcBest
ARCB 34.45 -4.5
HamiltonLane HLNE
Atlassian
TEAM 52.49 -0.5
HollysysAuto HOLI
5.94 -5.3
BallardPower BLDP
HorizNasd100 QYLD
CadenceDesign CDNS 44.67 ... Hortonworks HDP
3.24 -1.0
CatalystPharma CPRX
ICU Medical
ICUI
Cavium
CAVM 77.50 -0.2 IPG Photonics IPGP
CboeGlobalMkts CBOE 116.56 -0.9 Immucell
ICCC
CentennialRsc CDEV 22.11 1.4 InfinityPropCas IPCC
ChartIndustries GTLS 45.90 -0.4 Insulet
PODD
48.00 18.1 IntegratedDevice IDTI
ChinaInternet CIFS
4.98 12.5 Intricon
ChromaDex
CDXC
IIN
ClearBr AC Grw CACG 26.90 0.1 IntuitiveSurgical ISRG
ClearBrDivStrat YLDE 26.73 0.2 iShAsia50ETF AIA
Cognex
CGNX 136.88 1.1 iShCoreS&PUSGrowth IUSG
10.15 20.8 iShMSCIACWIETF ACWI
CommVehicle CVGI
CoStarGroup CSGP 301.47 -0.2 iShMSCIACxJpn AAXJ
Cresud
CRESY 23.69 1.0 iShMSCIChinaETF MCHI
16.77 1.1 iShPHLXSemicond SOXX
CypressSemi CY
DavisWorldwide DWLD 25.81 -0.5 JackHenry
JKHY
DiamondbackEner FANG 114.93 -1.7 Kulicke&Soffa KLIC
8.48 1.1 LGI Homes
DicernaPharma DRNA
LGIH
DoubleEagleWt EAGLW 1.11 3.7 LendingTree
TREE
DraperOakwoodRt DOTAR 0.52 16.7 LigandPharm LGND
DraperOakwoodWt DOTAW 0.70 -8.3 LimelightNetworks LLNW
EXACT Sci
EXAS 60.80 3.8 MGPIngredients MGPI
69.30 0.1 Marriott
Ebix
EBIX
MAR
24.15 3.1 MatchGroup
ElectroScientific ESIO
MTCH
Equinix
EQIX 493.80 -0.7 MicrochipTech MCHP
Everbridge
EVBG 29.64 4.4 MonolithicPower MPWR
ExpeditorsIntl EXPD 62.63 7.9 NVE
NVEC
Fanhua
FANH 18.43 12.3 NatlEnerSvs
NESR
FidelityNasdComp ONEQ 267.62 -0.3 NektarTherap NKTR
FT CapStrength FTCS 49.49 0.4 Neurocrine
NBIX
FT CloudComp SKYY 44.35 -0.5 NewsCorp A
NWSA
27.21 -0.7 NVIDIA
FT DorseyFoc5 FV
NVDA
FT NasdTechDiv TDIV 34.81 -0.1 ON Semi
ON
FT EnhShtMat FTSM 60.09 ... Orbotech
ORBK
12.33 -0.5 OrigoAcqnRt
FT GlbNatRscs FTRI
OACQR
58.81 0.8 Otelco
FT JapanAlpha FJP
OTEL
56.52 -0.1 PayPal
FT LC CoreAlpha FEX
PYPL
FT LC US Equity RNLC 20.97 -0.3 Perceptron
PRCP
38.41 -0.8 PinnacleEnt
FT MC GrwthAlpha FNY
PNK
64.06 -0.8 PlugPower
FT MCGrAlpDX FAD
PLUG
Nasdaq highs - 148
Net YTD
NAV Chg %Ret Fund
60.74 -0.06 11.9 Metropolitan West
FPA Funds
NA
... NA
TotRetBd
NA
... NA
35.20 -0.16 9.2 TotRetBdI
FPACres
NA
... NA
TRBdPlan
FrankTemp/Frank Adv
IncomeAdv 2.35 -0.01 7.7 MFS Funds Class I
40.49 -0.14 13.0
ValueI
FrankTemp/Franklin A
7.51 +0.04 6.1 MFS Funds Instl
CA TF A p
25.47 -0.08 25.7
Fed TF A p 12.01 +0.03 3.5 IntlEq
2.37 -0.01 7.5 Mutual Series
IncomeA p
32.43 -0.14 7.8
RisDv A p 60.92 +0.12 16.7 GlbDiscA
Oakmark Funds Invest
FrankTemp/Franklin C
33.92 -0.12 11.5
EqtyInc
r
Income C t 2.40 -0.01 7.4
84.95 -0.47 17.2
Oakmark
FrankTemp/Temp A
GlBond A p 12.18 -0.02 3.8 OakmrkInt 28.86 -0.23 27.1
Old
Westbury
Fds
Growth A p 26.82 -0.05 13.8
14.94 -0.04 16.4
LrgCpStr
FrankTemp/Temp Adv
Oppenheimer
Y
GlBondAdv p 12.13 -0.02 4.0
42.66 -0.07 33.4
DevMktY
Harbor Funds
43.22 -0.27 24.6
CapApInst 76.30 -0.14 34.7 IntGrowY
Parnassus
Fds
69.98 -0.25 19.8
IntlInst r
44.19 +0.15 13.4
ParnEqFd
Harding Loevner
NA
... NA PIMCO Fds Instl
IntlEq
NA
... NA
AllAsset
Invesco Funds A
10.31
... 5.2
11.31 -0.05 8.2 TotRt
EqIncA
PIMCO Funds A
John Hancock Class 1
NA
... NA
15.99 -0.04 13.3 IncomeFd
LSBalncd
PIMCO Funds D
17.17 -0.05 16.8
LSGwth
NA
... NA
IncomeFd
John Hancock Instl
PIMCO Funds Instl
DispValMCI 24.01 -0.12 11.8
NA
... NA
IncomeFd
JPMorgan Funds
PIMCO Funds P
MdCpVal L 39.64 -0.20 8.9
NA
... NA
IncomeP
JPMorgan R Class
Price Funds
11.67
... 3.9
CoreBond
Lazard Instl
EmgMktEq 19.66 -0.13 23.8
Loomis Sayles Fds
14.18 -0.03 7.0 ADVERTISEMENT
LSBondI
Lord Abbett A
... 2.2
ShtDurIncmA p 4.27
Lord Abbett F
... 2.5
ShtDurIncm 4.27
|WSJ.com/newhighs
Net YTD
NAV Chg %Ret Fund
73.72
52.79
61.14
18.15
70.00
6.06
7.61
26.00
10.85
1.10
18.75
21.95
18.75
24.10
32.14
25.53
34.40
29.11
23.27
24.50
18.93
195.40
223.63
8.82
103.68
72.26
33.60
14.20
391.23
66.09
52.76
70.85
76.58
67.45
178.75
113.25
23.82
65.33
280.80
147.18
5.63
74.40
123.31
27.99
95.92
125.75
88.62
9.80
27.40
75.40
14.53
212.90
22.03
53.95
0.60
11.03
75.45
9.66
27.37
3.21
-0.2
-0.5
0.5
6.3
11.0
4.6
0.3
0.3
0.7
8.1
-0.3
-1.1
-1.3
1.2
-0.3
0.7
...
4.9
2.0
...
-3.7
0.1
1.0
4.0
10.4
2.6
0.8
13.2
1.6
0.1
...
-0.1
-0.5
0.4
-0.1
0.7
-0.6
5.1
-3.0
-0.2
1.3
0.9
-0.9
-3.1
-4.1
-0.7
-1.1
0.5
10.5
...
-0.9
1.1
0.9
-0.2
1.7
7.0
-0.4
24.2
-1.4
-2.9
PwrShDWAMom DWLV
PwrShDWANasdMom DWAQ
PwrShDynTech PTF
PwrShGlbWater PIO
PwrShIntlBuyBack IPKW
PwrShQQQ 1 QQQ
Presidio
PSDO
PrincipalPriceSet PSET
ProShUltPrQQQ TQQQ
QAD A
QADA
Qorvo
QRVO
ROBOGlblRobotics ROBO
SEI Investments SEIC
SareptaTherap SRPT
SprottFocus
FUND
StaarSurgical STAA
StarsGroup
TSG
Synopsys
SNPS
TabulaRasaHlth TRHC
TechTarget
TTGT
TexasInstruments TXN
TransActTechs TACT
TrilliumTherap TRIL
TwinDisc
TWIN
USA Tech
USAT
USA Truck
USAK
UniversalDisplay OLED
VangdRuss1000 VONE
VangdRuss1000Grw VONG
VSInverseVIXSTerm XIV
VeriskAnalytics VRSK
VicShUS500EnhVol CFO
VicShUS500Vol CFA
ViperEnergyPtrs VNOM
WisdTrChinaxSOE CXSE
WisdTrUSQltyDiv DGRW
XOMA
XOMA
Xilinx
XLNX
ZAGG
ZAGG
17.6
11.4
5.2
24.9
27.6
14.1
13.5
2.3
24.8
17.1
6.8
2.5
41.5
4.2
4.5
10.1
14.5
7.5
4.9
6.3
2.6
1.4
24.8
5.1
11.7
1.5
2.3
3.6
2.5
24.4
16.9
23.6
30.62
103.67
54.60
25.46
35.87
154.08
16.90
30.88
134.89
39.70
79.98
41.18
66.00
57.57
7.94
14.00
21.15
87.91
31.05
12.75
99.05
14.15
10.45
25.94
6.80
15.89
167.85
119.06
134.49
114.46
92.92
46.90
46.94
20.81
84.87
39.53
30.48
75.14
19.60
-0.3
-0.5
-0.9
-0.2
0.3
0.1
8.8
0.2
0.2
-1.0
...
...
-0.9
0.6
-0.9
1.1
0.7
-0.4
5.8
0.5
-0.1
4.7
8.0
-1.9
4.8
-1.4
2.6
-0.1
...
-0.5
1.3
-0.2
-0.2
-1.4
0.6
0.3
18.3
-0.8
1.3
Nasdaq lows - 77
AethlonMedical AEMD
Airgain
AIRG
AlcentraCapital ABDC
AmbacFin
AMBC
AquinoxPharm AQXP
ArcadiaBiosci RKDA
BedBath
BBBY
Big5SportingGoods BGFV
BurconNutraScience BUR
CHF Solutions CHFS
CalFstNBcp
CFNB
Cardtronics
CATM
Ceragon
CRNT
Cherokee
CHKE
CoherusBioSci CHRS
ConsldComm CNSL
Criteo
CRTO
Curis
CRIS
Net YTD
NAV Chg %Ret Fund
97.53 -0.49 34.3 VANGUARD ADMIRAL
BlChip
29.74 -0.02 13.6 500Adml 239.48 -0.05
CapApp
34.78 -0.13 12.0 BalAdml
EqInc
34.15 -0.03
69.64 -0.01 17.4 CAITAdml
EqIndex
11.86 +0.03
70.37 -0.28 32.2 CapOpAdml r155.13 -0.37
Growth
74.66 -0.16 26.4 EMAdmr
HelSci
37.25 -0.12
39.65 -0.19 35.6 EqIncAdml 76.47 -0.05
InstlCapG
19.28 -0.10 26.1 ExtndAdml 81.83 -0.70
IntlStk
15.29 -0.04 19.4 GNMAAdml 10.54
IntlValEq
...
91.87 -0.41 21.9 GrwthAdml 70.86 +0.05
MCapGro
31.20 -0.12 7.4 HlthCareAdml r 88.80 -0.07
MCapVal
55.50 -0.47 28.1 HYCorAdml r 5.95 -0.01
N Horiz
9.52
... 3.9 InfProAd
N Inc
25.89 +0.03
OverS SF r 11.41 -0.03 25.8 IntlGrAdml 95.24 -0.36
23.26 -0.04 14.0 ITBondAdml 11.45
R2020
...
17.94 -0.04 15.7 ITIGradeAdml 9.83
R2025
...
26.44 -0.06 17.4 LTGradeAdml 10.69
R2030
...
19.33 -0.06 18.7 MidCpAdml 184.73 -0.52
R2035
27.78 -0.09 19.7 MuHYAdml 11.46 +0.04
R2040
38.87 -0.08 15.5 MuIntAdml 14.23 +0.03
Value
PRIMECAP Odyssey Fds
MuLTAdml 11.74 +0.04
35.91 -0.01 25.4 MuLtdAdml 10.97
Growth r
...
Principal Investors
...
MuShtAdml 15.78
DivIntlInst 13.99 -0.06 27.2 PrmcpAdml r135.82 -0.07
Prudential Cl Z & I
REITAdml r 119.55 +0.99
14.59 +0.01 6.2 SmCapAdml 68.40 -0.57
TRBdZ
Schwab Funds
...
STBondAdml 10.44
40.48 -0.01 17.6 STIGradeAdml 10.68 -0.01
S&P Sel
TIAA/CREF Funds
...
TotBdAdml 10.80
19.39 -0.03 16.9 TotIntBdIdxAdm 22.01 +0.03
EqIdxInst
IntlEqIdxInst 20.33 -0.05 22.8 TotIntlAdmIdx r 30.06 -0.09
Tweedy Browne Fds
TotStAdml 64.67 -0.10
28.47 -0.09 13.7 TxMIn r
GblValue
14.23 -0.04
52-Wk %
Sym Hi/Lo Chg Stock
ValAdml
WdsrllAdml
WellsIAdml
WelltnAdml
WndsrAdml
0.83 -7.4
7.35 -2.4
8.00 -4.4
15.45 -1.2
10.85 -4.3
0.26 0.6
19.07 -3.6
6.00 3.3
0.42 -12.4
5.51 -8.1
13.10 -7.1
16.64 -3.7
1.77 ...
1.72 1.3
10.07 -9.2
14.56 -4.2
36.02 -4.6
1.23 -15.9
DarioHealth
DRIO
DifferentialBrds DFBG
DiffusionPharm DFFN
ElevenBiotherap EBIO
Essendant
ESND
FAT Brands
FAT
FC GlblRealty FCRE
FTD
FTD
Finisar
FNSR
FivePrimeTherap FPRX
ForwardPharma FWP
Fred's
FRED
FulgentGenetics FLGT
GreatElmCap GECC
GuarantyBcshrs GNTY
Gulf Resources GURE
Hawkins
HWKN
HostessBrandsWt TWNKW
HostessBrands TWNK
Innodata
INOD
iPass
IPAS
iShMSCIQatarCapped QAT
JaguarHealth JAGX
KEYW
KEYW
LexiconPharm LXRX
LibertyTripAdvB LTRPB
LibertyTripAdvA LTRPA
LifePointHealth LPNT
ManhattanAssoc MANH
MinervaNeurosci NERV
NaturalHlthTrends NHTC
Net1UEPS
UEPS
NumereX
NMRX
OxfordImmunotec OXFD
PCM
PCMI
PacBiosciCA
PACB
PapaJohn's
PZZA
ProShUltraProShQQQ SQQQ
ProteostasisTher PTI
QuantennaComms QTNA
RMG Networks RMGN
RedHillBio
RDHL
RestorationRob HAIR
RevolutionLight RVLT
RitterPharm
RTTR
Sanfilippo
JBSS
SearsHoldings SHLD
SelectaBiosci SELB
Shutterfly
SFLY
TearLab
TEAR
Teligent
TLGT
Trevena
TRVN
TripAdvisor
TRIP
VeecoInstr
VECO
VS2xVIXShortTerm TVIX
VSVIXShortTerm VIIX
Veracyte
VCYT
Vical
VICL
ZealandPharma ZEAL
Net YTD
NAV Chg %Ret Fund
39.80 -0.05
69.19 -0.11
65.50
...
74.00 -0.04
79.29 -0.27
VANGUARD FDS
26.32 +0.03
DivdGro
HlthCare r 210.49 -0.17
INSTTRF2020 22.59 -0.02
INSTTRF2025 22.86 -0.03
INSTTRF2030 23.05 -0.03
INSTTRF2035 23.24 -0.04
INSTTRF2040 23.43 -0.05
INSTTRF2045 23.58 -0.04
39.48 -0.10
IntlVal
33.23 -0.06
LifeGro
27.00 -0.03
LifeMod
26.89 -0.04
PrmcpCor
33.29 -0.13
SelValu r
27.27 -0.05
STAR
10.68 -0.01
STIGrade
TgtRe2015 15.97 -0.01
TgtRe2020 31.69 -0.03
TgtRe2025 18.58 -0.02
TgtRe2030 33.56 -0.05
TgtRe2035 20.61 -0.04
TgtRe2040 35.50 -0.06
TgtRe2045 22.30 -0.04
TgtRe2050 35.87 -0.07
13.61 -0.01
TgtRetInc
TotIntBdIxInv 11.01 +0.02
27.04
...
WellsI
11.9
12.1
8.5
11.8
15.5
14.1
17.1
12.2
13.7
15.0
16.2
17.5
18.1
24.3
16.3
12.9
21.2
15.7
16.0
2.2
10.1
12.1
13.6
14.9
16.2
17.5
18.1
18.0
7.5
2.4
8.4
52-Wk %
Sym Hi/Lo Chg
1.40 -7.0
0.85 -5.0
1.27 -6.2
0.65 -6.6
8.98 -2.4
8.10 -4.0
0.70 -14.6
10.05 -6.3
18.43 -3.6
21.41 -40.9
5.05 -4.9
4.21 -0.5
2.73 -14.3
9.58 -3.3
28.00 -0.2
1.50 -3.8
34.55 -2.6
1.24 -2.3
11.09 -2.3
1.10 4.3
0.49 -8.3
14.58 -2.1
0.16 -6.2
4.94 -1.4
9.52 -1.5
10.90 -16.0
8.45 -26.1
45.00 -1.1
40.75 0.3
5.35 -6.1
17.01 -6.9
8.87 2.8
3.47 -5.9
12.19 -2.3
9.85 -29.3
2.73 -4.5
57.38 -1.7
22.46 -0.1
1.53 -7.0
9.60 -32.4
0.91 -24.9
7.35 -9.6
6.36 -0.3
4.50 -7.2
0.29 -10.1
55.10 -1.9
4.96 -4.6
10.05 -54.0
39.76 1.5
1.12 -0.8
2.82 -43.6
1.35 -1.3
30.21 -23.2
15.95 -2.4
7.95 1.2
13.97 0.6
5.75 -21.4
1.66 -8.3
14.57 -3.7
Net YTD
NAV Chg %Ret
Welltn
WndsrII
42.85 -0.02
38.99 -0.06
VANGUARD INDEX FDS
239.45 -0.05
500
ExtndIstPl 201.93 -1.73
SmValAdml 54.95 -0.51
10.76
...
TotBd2
17.97 -0.06
TotIntl
64.64 -0.10
TotSt
VANGUARD INSTL FDS
34.16 -0.03
BalInst
DevMktsIndInst 14.24 -0.05
DevMktsInxInst 22.26 -0.07
81.82 -0.71
ExtndInst
GrwthInst 70.87 +0.06
10.55 +0.02
InPrSeIn
236.27 -0.05
InstIdx
236.29 -0.05
InstPlus
InstTStPlus 58.01 -0.09
MidCpInst 40.81 -0.11
MidCpIstPl 201.26 -0.57
SmCapInst 68.40 -0.57
STIGradeInst 10.68 -0.01
10.80
...
TotBdInst
...
TotBdInst2 10.76
...
TotBdInstPl 10.80
TotIntBdIdxInst 33.02 +0.04
TotIntlInstIdx r120.22 -0.36
TotItlInstPlId r120.24 -0.36
64.68 -0.10
TotStInst
39.80 -0.04
ValueInst
Western Asset
...
CorePlusBdI NA
11.7
12.0
17.5
13.5
7.0
3.5
24.3
16.8
11.4
23.6
23.6
13.5
24.8
2.6
17.6
17.6
16.8
14.6
14.5
11.7
2.3
3.6
3.6
3.6
2.5
24.5
24.5
16.9
11.9
NA
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
Exchange-Traded
Portfolios
WSJ.com/ETFresearch
Tuesday, November 7, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
AMLP
XLY
XLP
DGP
DZZ
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
11.00
91.82
53.16
24.04
5.60
70.16
26.38
96.98
81.53
71.98
109.80
105.01
123.16
65.29
56.11
62.37
260.49
182.67
73.30
59.20
109.58
94.79
71.73
51.58
12.26
121.06
87.74
114.65
106.93
70.70
69.64
63.04
46.56
43.43
59.65
314.02
111.13
130.95
143.91
119.83
178.83
147.00
122.20
153.08
200.95
85.96
209.19
149.67
109.27
38.26
114.30
84.19
106.54
126.64
116.39
101.75
153.88
46.93
23.11
36.93
121.21
34.17
62.48
61.80
235.42
333.08
258.67
92.23
63.66
55.66
22.73
165.26
127.93
97.07
44.26
44.77
58.17
53.91
137.68
151.71
82.72
84.56
87.84
118.78
149.15
106.40
84.33
237.69
79.53
79.82
142.79
81.89
55.13
56.01
132.84
72.55
102.01
66.04
59.10
32.17
Average Yields of Major Banks
Type
Largest 100 exchange-traded funds, latest
session
ETF
BANKRATE.COM® MMA, Savings and CDs
0.73 –12.7
–0.60 12.8
2.8
1.12
–1.35 19.5
0.79 –18.4
–0.13 –6.9
–1.38 13.5
–0.15 11.9
0.21 18.3
0.15 15.7
1.5
–0.02
0.1
0.01
0.5
–0.03
21.7
–0.37
–0.66 32.2
–0.35 23.5
–0.05 15.8
–0.63 10.5
6.6
–1.08
–0.19 15.4
1.4
0.03
7.0
0.03
–0.13 17.2
0.43 14.1
–0.41 10.6
3.3
–0.08
1.4
–0.28
4.0
–0.53
0.6
...
–0.13 19.5
–0.37 20.6
–0.46 26.5
–0.64 33.0
–0.84 25.5
0.79 22.1
–0.50 18.3
2.7
0.25
–0.02 24.8
–0.08 15.6
7.0
–0.20
–1.12 16.2
9.0
–1.20
2.7
–1.35
–0.20 15.1
–0.31 12.4
6.9
–0.29
–0.61 14.8
0.11 22.9
7.8
–0.16
2.8
0.08
1.0
0.14
–0.05 –0.3
1.6
0.04
6.3
0.42
–0.33 19.5
0.4
0.01
0.06 29.9
0.45 12.9
0.09 –1.1
1.3
–0.14
–0.36 10.6
–0.38 23.4
–0.16 15.3
–0.08 16.0
0.00 19.2
–0.63 10.4
–0.07 15.7
7.8
0.12
0.05 31.6
1.20 14.6
8.7
–0.79
–0.04 36.0
5.7
–0.89
0.22 14.0
–0.34 21.1
–0.62 25.1
–0.85 21.3
–0.39 22.0
0.11 23.5
0.10 19.7
9.2
0.05
1.8
0.02
2.5
–0.01
–0.04 16.0
–0.29 13.3
9.5
–0.29
2.2
0.81
–0.04 15.8
0.1
–0.01
0.6
–0.03
–0.76 10.7
1.4
0.04
1.5
0.18
–0.37 22.1
–0.17 15.2
–0.21 18.9
9.7
–0.11
–0.86 15.1
0.96 19.3
–0.25 14.6
AUCTION
Tuesday, November 7, 2017
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
0.12
0.22
0.07
0.07
0.07
0.08
0.13
0.14
0.20
0.22
0.36
0.38
0.47
0.51
0.46
0.49
0.94
0.99
0.01
0.01
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
-0.01
0.00
-0.01
-0.01
-0.02
-0.01
-0.01
-0.01
-0.01
National average
Savings
Jumbos
Weekly change
Savings
Jumbos
Consumer Savings Rates
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Minimum
Yield
(%)
Money market and savings account
DollarSavingsDirect /4
(866) 395-8693
CIT Bank /4
(855) 462-2652
Barclays /4
(888) 720-8756
$1
1.50
$100
1.35
$0
1.30
$0
0.81
$5,000
0.30
$10,000
0.15
$10,000
0.15
$1,000
0.05
One-month CD
EH National Bank /2
(888) 392-5265
M.Y. Safra Bank, FSB /4
(212) 652-7200
VirtualBank /4
(877) 998-2265
Yield
(%)
Six-month CD
VirtualBank /4
$10,000
(877) 998-2265
CD Bank /4
$10,000
(888) 201-8185
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
VirtualBank /4
(877) 998-2265
Banesco USA /3
(786) 552-0524
CD Bank /4
(888) 201-8185
VirtualBank /4
(877) 998-2265
Banesco USA /3
(786) 552-0524
Goldwater Bank /3
(480) 281-8200
1.40
1.37
$10,000
1.76
$1,500
1.75
$10,000
1.75
$10,000
1.86
$1,500
1.85
$5,000
1.85
1.15
$5,000
1.10
$5,000
1.01
Money market and savings account
1.30
1.26
1.25
One-month CD
EH National Bank /2
(888) 392-5265
M.Y. Safra Bank, FSB /4
(212) 652-7200
USAA /5
(800) 583-8295
VirtualBank /4
$10,000
(877) 998-2265
Goldman Sachs Bank USA /5
$500
(855) 730-7283
Barclays /4
$0
(888) 720-8756
0.81
0.30
0.22
!
""! " #! ! $ %! &! " %! ' !
! !
!! "!
( #$!! $
' $! !
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!!
! /$! 0!
! -
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! "' 1$
! ! !!
$
! 23452
! 6!'
2.41
2.35
ADVERTISE TODAY
Six-month CD
VirtualBank /4
(877) 998-2265
First Internet Bank of Indiana /4
(888) 873-3424
M.Y. Safra Bank, FSB /4
(212) 652-7200
VirtualBank /4
(877) 998-2265
ableBanking,adivisionofNortheastBank/4
(888) 426-2253
EverBank /3
(855) 228-6755
THE MART
1.41
1.37
1.37
1.76
(800) 366-3975
sales.mart@wsj.com
For more information visit:
wsj.com/classifieds
0.05
0.01
VirtualBank /4
(877) 998-2265
First Internet Bank of Indiana /4
(888) 873-3424
EverBank /3
(855) 228-6755
1.10
1.01
VirtualBank /4
(877) 998-2265
Synchrony Bank /5
(800) 903-8154
EverBank /3
(855) 228-6755
Very Rare AGERWOOD (Oud) fully functional plantation in Vietnam. Certified for Organic
export. 95 Hectares private land. 36,000 mature trees 15 to 20 years. 6000 extremely rare
RED Agerwood. Excellent yield with 2 hectare
propriety processing plant. Call Dong Bach,
ph +849 6628 6676 or dong.bach@gmail.com
BUSINESS OPPORTUNITIES
BUSINESS OPPORTUNITY
Short term business sales contracts
for sale. Contracts pay 28% interest
with 12 monthly principal & interest
payments. ph-616-430-7987
mondialinvestments@gmail.com
BUSINESS OPPORTUNITIES
GLACIER VALLEY MINING AND
METALS IS FOR SALE - INVEST
Included is a $47 million dollar tax shelter that
was created in 1984 via the IRS regulations of
the U.S. Treasury Dept. Never used, and intact.
gjdeden@aol.com
www.gvmtaxshelter.com
!"""
#$!
1.68
CAPITAL WANTED
12 y.o. IT Staffing CO / $100M+
Govt contracts seek PRIVATE lender/
investor for $10M refinance loan paid
off through $5M annual ESOP tax
reimbursement for cost plus govt
contractors. No brokers. 530-307-0103
TRAVEL
%%%&'&
() **
1.86
Co-Investment - Preferred Equity
1.85
$600K total offering, including $100K from us
1.82
(recent acquisition, tenants just removed, reno
starts this month). Accredited Investors Only.
Apt Renovation in Brooklyn
www.firstrealfund.com
info@firstrealfund.com 888-673-7249
Five-year CD
1.10
BUSINESS FOR SALE
1.70
Two-year CD
0.15
Three-month CD
Luana Savings Bank /4
(800) 666-2012
M.Y. Safra Bank, FSB /4
(212) 652-7200
EverBank /3
(855) 228-6755
7,!!
8
! /
2.40
One-year CD
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Citizens Trust Bank /4
(404) 659-5959
Please contact Michael Breslauer, at
(619) 238 4804 or mbreslauer@swsslaw.com
Five-year CD
$10,000
High yield jumbos - Minimum is $100,000
ableBanking,adivisionofNortheastBank/4
(877) 505-1933
M.Y. Safra Bank, FSB /4
(212) 652-7200
BBVA Compass /3
(800) COMPASS
NOTICE OF PUBLIC SALE
On November 30, 2017 at 4:00 p.m. (PDT), at 401 B
Street, Suite 1200, San Diego, CA 92101, pursuant to
the authority of the Security Agreement and other
related agreements between Marina Enterprises, Inc.,
or its assignee ("Marina"), and California Board
Sports Inc. (the "Debtor") and applicable provisions of
the CA Comm. Code, Marina will at a public sale after
default, sell in bulk, or in units, to the highest cash
bidder, the following assets of the Debtor: All
equipment, fixtures, inventory, accounts, chattel
paper, contract rights, general intangibles, including,
but not limited to, all copyrights, trademarks (domestic and international) and trade names, and all
proceeds of the foregoing. This sale will be (i) subject
to the existing first lien and security interest held by
TAB Bank and (ii) without warranty of possession or
quiet enjoyment.
1.41
Two-year CD
Three-month CD
CD Bank /4
(888) 201-8185
M.Y. Safra Bank, FSB /4
(212) 652-7200
EverBank /3
(855) 228-6755
Minimum
One-year CD
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Bank/rank
Phone number
BUSINESS OPPORTUNITIES
Securities Offered through North Capital
Private Securities, Member FINRA/SIPC.
2.41
2.35
First & Business
INTERNATIONAL
Major Airlines, Corporate Travel
Never Fly Coach Again!
www.cooktravel.net
(800) 435-8776
ASSET SALE
US and Overseas Patents of PeptiMed
Immuno-Oncology Drug
Tumor-Targeting Nanoparticle Delivery
Orphan Designation in Ovarian Cancer
For More Information Contact
2.35
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
Save Up To 60%
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
Shiloh Consulting
shilohconsulting@att.net
Bids accepted until December 31,2017
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B10 | Wednesday, November 8, 2017
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23557.23 s 8.81, or 0.04%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.29 20.05
P/E estimate *
19.35 16.91
Dividend yield
2.16
2.47
All-time high 23557.23, 11/07/17
Nasdaq Composite Index
Last
2590.64 t 0.49, or 0.02%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.33 23.02
P/E estimate *
19.39 17.78
Dividend yield
1.92
2.20
All-time high: 2591.13, 11/06/17
Last Year ago
6767.78 t 18.65, or 0.27%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 16.10
23.75
P/E estimate *
21.55
18.79
Dividend yield
1.05
1.25
All-time high: 6786.44, 11/06/17
Current divisor 0.14523396877348
23500
2580
6750
23000
2550
6650
22500
2520
6550
22000
2490
6450
21500
2460
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
6350
65-day moving average
65-day moving average
65-day moving average
6250
2430
21000
Bars measure the point change from session's open
Sept.
Oct.
6150
2400
20500
Aug.
Aug.
Nov.
Sept.
Oct.
Aug.
Nov.
Sept.
Oct.
Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
23602.12 23484.19 23557.23
9766.80
9658.64
759.67
747.75
758.92
-0.62
6750.35
6299.53
1.29
9.67
26882.68 26725.37 26786.83 -43.78
687.98
679.67
681.09 -6.21
Nasdaq Stock Market
Nasdaq Composite
6795.52
Nasdaq 100
6328.58
0.04
8.81
9671.79 -60.00
-0.16
-0.90
-0.27
6767.78 -18.65
7.17
6320.78
Standard & Poor's
500 Index
2597.02
2584.35
2590.64
MidCap 400
SmallCap 600
1844.93
904.31
1825.33
890.13
1830.62 -12.74
893.07 -9.67
Other Indexes
Russell 2000
1498.00
1476.72
1479.09 -18.87
0.11
-0.02
-0.49
28.5
19.2
10038.13
8328.29
16.1
6.9
2.6
758.92
625.44
13.4
15.1
8.0
26830.60 22069.76
691.56
535.88
21.4
27.1
15.1
13.2
8.2
8.1
6786.44
6320.78
5193.49
4702.04
30.3
31.5
10.3
25.7
30.0
2139.56
21.1
15.7
8.4
-1.07
1843.36
918.72
1513.34
726.04
21.0
23.0
10.2
6.6
8.6
9.6
-1.26
1512.09
1195.14
23.8
9.0
8.0
-0.69
Volume, Advancers, Decliners
NYSE Composite
12415.96 12344.64 12371.25 -29.68
-0.24
537.18
NYSE Arca Biotech
4172.42
4126.82
NYSE Arca Pharma
536.58
533.07
534.17
KBW Bank
102.23
99.48
99.68
-2.32 -2.27
82.13
81.29
81.87
-0.41
-0.50
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
CBOE Volatility
538.21
-3.86
12430.52 10530.56
-0.71
542.53
17.5
11.9
4.4
545.98
467.03
15.2
6.3
2.8
8.1
4144.38 -10.27
-0.25
4304.77
3041.76
36.2
34.8
-2.37
-0.44
560.52
463.78
12.7
10.9
0.3
102.31
75.14
32.7
8.6
10.9
96.72
73.03
-6.1
3.8
5.8
117.79
-6.9
141.96
139.97
140.58
-0.36
-0.26
192.66
1319.22
10.31
1308.01
9.29
1316.55
9.89
-0.79
0.49
-0.06
1317.34
18.74
5.21
Philadelphia Stock Exchange
806.09 59.1
9.14 -47.2
Company
Volume
(000)
Symbol
SNAP 12,590.8
Last
Net chg
12.65
-2.47
CMCSA 6,703.4
Comcast Cl A
36.22
Kennedy-Wilson Holdings KW
5,557.5 19.40
SPY
SPDR S&P 500
4,971.5 258.26
Snap
After Hours
% chg
High
Region/Country Index
Close
15.47
11.78
-0.17
-0.47
38.35
36.07
…
unch.
19.40
19.40
-0.41
-0.16 258.78 258.07
VanEck Vectors Gold Miner GDX
4,201.5
22.71
-0.02
-0.09
22.76
22.69
JPMorgan Chase
JPM
4,168.6
98.72
-0.03
-0.03
99.24
97.09
Merck
MRK
3,109.1
55.50
-0.09
-0.16
55.78
55.50
Southwestern Energy SWN
2,943.4
6.14
…
unch.
6.15
6.12
17.33
Percentage gainers…
106.6
21.52
4.19
24.18
21.52
Container Store Group TCS
73.9
4.60
0.77
20.10
4.73
3.83
Foot Locker
FL
46.3
34.38
5.14
17.58
34.38
29.24
Juniper Networks
JNPR
742.6
28.45
3.95
16.12
28.45
24.49
Interpublic Grp
IPG
142.4
21.34
2.80
15.10
21.34
18.54
DISCA
...And losers
LendingClub
LC
1,229.3
4.33
-1.13
-20.70
5.46
4.08
Snap
SNAP 12,590.8
12.65
-2.47
-16.34
15.47
11.78
-23.5 -17.3
Fossil Group
FOSL
927.7
6.08
-0.77
-11.24
7.12
4.85
45.2
-29.6
Fluor
FLR
10.3
43.10
-4.98
-10.36
48.08
43.10
Graphic Packaging
GPK
29.1
14.16
-1.34
-8.65
15.50
14.16
27.3
-9.0
Percentage Gainers...
Net chg
Latest
% chg
YTD
% chg
0.11
0.08
17.8
18.5
21.7
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
622.32
–0.12
–0.76
Sao Paulo Bovespa 72414.88 –1895.92 –2.55
0.25
S&P/TSX Comp
16131.79
39.59
0.08
S&P/BMV IPC
49004.52
37.51
Santiago IPSA
4166.51
–0.66
–27.88
15.2
20.2
5.5
7.4
29.3
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
394.65
397.29
4097.64
5480.64
13379.27
1423.36
22962.59
553.80
1146.98
10230.70
595.61
9220.16
7513.11
–1.94
–2.11
–20.87
–26.61
–89.52
–3.95
–40.26
–1.42
37.60
–85.80
–3.10
–68.62
–49.17
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6014.30
Shanghai Composite 3413.57
Hang Seng
28994.34
S&P BSE Sensex
33370.76
Nikkei Stock Avg
22937.60
Straits Times
3413.10
Kospi
2545.44
Weighted
10840.34
60.50
25.40
397.54
–360.43
389.25
31.25
–3.97
54.15
2981.80
386.25
260.45
The Global Dow
DJ Global Index
DJ Global ex U.S.
3.32
–0.02
0.21
–0.005
–0.49
–0.53
–0.51
–0.48
–0.66
–0.28
–0.18
–0.26
3.39
–0.83
–0.52
–0.74
–0.65
1.02
0.75
1.39
–1.07
–0.16
1.73
0.92
0.50
9.2
13.4
13.6
12.7
16.5
–3.2
19.4
14.6
–0.5
9.4
11.4
12.2
5.2
6.2
10.0
31.8
25.3
20.0
18.5
25.6
17.1
Company
Symbol
Myomo
Kindred Healthcare
NeoPhotonics
Perceptron
ShiftPixy
MYO
Commercial Vehicle Group
Spark Networks ADR
XOMA
China Internet Nationwide
Virtu Financial
CVGI
Valeant Pharm Intl
Key Energy Services
U.S. Global Investors A
GGP
Cambrex Corp
VRX
8.85
8.40
5.92
9.54
3.25
KND
NPTN
PRCP
PIXY
52-Week
Low
% chg
High
4.61 108.73
2.40 40.00
1.17 24.63
1.86 24.22
0.60 22.64
23.20
11.90
14.00
9.66
11.64
Selected rates
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
t
30-year fixed-rate
mortgage
3.00
2.00
t
1.00
0.00
ND J FMAM J J A S ON
2017
3.63%
541-410-6086
18.71 8.31
38.00 9.11
4.30 1.25
27.10 18.83
62.95 42.55
-5.9
...
124.3
-12.0
2.1
TripAdvisor
Veracyte
Blue Apron Cl A
Veritone
Veritiv Corp.
TRIP
Advanced Micro Devices
SPDR S&P 500
GGP
iShares MSCI Emg Markets
General Electric
AMD
Volume % chg from Latest Session
(000) 65-day avg Close % chg
93,871
68,558
68,435
67,543
66,556
VRX
RLOG
XLF
BAC
66,039
52,403
52,298
45,146
40,806
SPY
GGP
EEM
GE
52-Week
High
Low
2183.4 2.32 38.10 151200.00
482.2 14.10 17.11
18.71
11159.0 1.90 314.12
2.95
32.8 26.38 -1.38
26.93
4.7 27.18 -2.05
27.98
13.6
-18.5
818.0
-7.1
-27.2
12.05 1.01
258.67 -0.07
22.20 16.78
46.56 -0.64
20.21 0.40
0.32
8.31
0.19
19.79
16.71
15.65
6.22
259.35 212.34
27.10 18.83
46.87 33.94
32.38 19.63
Fortune Financial, Inc.
Englewood, CO
3.63%
303-706-0920
Pacific Finance Group, LLC
3.63%
Bothell, WA
425-354-5602
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.38
1.40
Money market, annual yield
0.32
0.33
Five-year CD, annual yield
1.47
1.48
30-year mortgage, fixed†
3.94
3.87
15-year mortgage, fixed†
3.24
3.22
Jumbo mortgages, $424,100-plus† 4.26
4.29
Five-year adj mortgage (ARM)† 3.44
3.47
New-car loan, 48-month
3.02
3.02
HELOC, $30,000
5.19
5.06
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.61
l
2.85
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.40
0.36
1.48
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.17
-0.10
-0.07
-0.20
...
-0.06
-0.19
-0.22
0.61
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
10%
3.00
5
2.25
0
1.50
–5
0.75
–10
0.00
–15
30
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Close
WSJ Dollar index
s
Euro
s
Yen
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1465.839
2.103
2.132
2.237
1.564 –0.497 2.102
2.309
3.074
2.580
5.251
2.820
1.935
2.374
3.040
2.600
5.230
2.860
1.991
2.609
3.390
2.790
6.448
3.120
2.516
1.867
2.781
2.160
4.948
2.330
1.689
2.843
3.120
1.198
8.259
0.740
2.188
797.003
5.618
5.469
6.290
5.279
4.196 5.560
EMBI Global, J.P. Morgan
VRTV
Company
Symbol
IQ 50% Hdg FTSE Intl
Knot Offshore Partners
Perceptron
iSh Edge MSCI Intl Qual
Red Robin Gourmet Burgers
HFXI
65.56 30.21
9.80 5.75
11.00 3.03
74.92 7.76
62.60 24.70
-51.9
-3.7
...
...
-54.0
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
RRGB
4,458
1,363
433
124
7,015
3706
3063
2228
2120
2072
21.47 -0.74
21.45 -7.74
9.54 24.22
29.29 -0.48
47.70 -28.86
21.70
24.67
9.66
29.47
74.11
TLGT
Teligent
OTEL
Otelco Cl A
FPA
FT Asia Pacific ex Japan
Quantenna Communications QTNA
Osprey Energy Acquisition OSPR
8,256
217
240
4,829
149
2040
1859
1852
1801
1706
2.96 -43.62
10.70 7.00
34.67 -2.15
10.05 -32.41
9.58 0.00
9.54 2.82
11.03 4.66
35.45 26.99
25.45 9.60
9.69 9.55
Country/currency
KNOP
PRCP
IQLT
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Americas
Argentina peso
.0567 17.6495
Brazil real
.3057 3.2714
Canada dollar
.7826 1.2778
Chile peso
.001576 634.40
Colombia peso
.0003294 3036.23
Ecuador US dollar
1
1
Mexico peso
.0522 19.1507
Peru new sol
.3084 3.243
Uruguay peso
.03422 29.2200
Venezuela b. fuerte .094852 10.5428
11.2
0.5
–4.9
–5.3
1.1
unch
–7.6
–3.3
–0.4
5.5
1.946
3.941
2.483
4.079
2.152
2.875
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7644 1.3082 –5.8
China yuan
.1506 6.6410 –4.4
Hong Kong dollar
.1281 7.8046 0.6
India rupee
.01535 65.166 –4.1
Indonesia rupiah .0000740 13522 –0.02
Japan yen
.008771 114.01 –2.6
Kazakhstan tenge .002995 333.92 0.1
Macau pataca
.1247 8.0215 1.3
Malaysia ringgit
.2364 4.2295 –5.7
New Zealand dollar
.6901 1.4491 0.3
Pakistan rupee
.00950 105.250 0.8
Philippines peso
.0194 51.426 3.7
Singapore dollar
.7332 1.3638 –5.8
South Korea won .0008977 1113.93 –7.8
Sri Lanka rupee
.0065181 153.42 3.4
Taiwan dollar
.03315 30.170 –7.0
17.61
20.60
5.59
23.90
45.20
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
.03018 33.140 –7.5
.00004403 22714 –0.3
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04534 22.053 –14.1
.1557 6.4238 –9.1
1.1587 .8631 –9.2
.003718 268.96 –8.6
.009439 105.94 –6.2
.1224 8.1726 –5.5
.2730 3.6635 –12.5
.01684 59.371 –3.1
.1191 8.3989 –7.8
1.0002 .9998 –1.9
.2574 3.8847 10.3
.0374 26.7615 –1.2
1.3168 .7594 –6.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6511 .3772 0.01
.0567 17.6465 –2.7
.2844 3.5158 –8.6
3.3029 .3028 –0.9
2.5980 .3849 –0.01
.2742 3.647 0.2
.2666 3.7511 0.01
.0702 14.2374 4.0
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.93
0.27 0.30 –5.38
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
-23.22
-21.43
-21.39
-21.19
-20.31
Ranked by change from 65-day average*
Asia-Pacific
2017
10-yr Treasury, Ryan ALM 1740.602
DJ Corporate
379.601
Aggregate, Barclays Capital 1946.200
High Yield 100, Merrill Lynch 2861.821
Fixed-Rate MBS, Barclays 1991.290
Muni Master, Merrill
523.704
Treasury, Ryan ALM
VERI
-9.18
-1.77
-0.83
-7.77
-6.60
U.S.-dollar foreign-exchange rates in late New York trading
Corporate Borrowing Rates and Yields
Bond total return index
APRN
30.35
6.49
3.05
28.90
25.90
Currencies
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
VCYT
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
3.75%
Capital Funding Mortgage
3.63%
Newtown, PA
215-860-1513
PCMI
Volume Movers
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Tuesday
True
17.11
16.94
16.90
16.78
15.94
Most Active Stocks
t
10-year Treasury
note yield
Accelin Loans LLC
Bend, OR
MNK
2.06
1.86
0.48
3.19
6.80
notes and bonds
3.63%
206-855-6323
-28.6
-47.5
-100.0
-2.7
-60.8
FPRX
14.10
12.84
GROW
3.32
GGP
22.20
CBM
49.45
KEG
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Accelin Loans LLC
Kaneohe, HI
10.05 -4.82 -32.41
25.45 9.60
10.00 -4.15 -29.33
31.20 9.85
DCIX
14.27 -5.92 -29.32 1131015.06 1.56
RRGB
47.70 -19.35 -28.86
74.11 45.20
LTRPA
8.50 -3.00 -26.09
22.35 8.45
TLGT
QTNA
t
4.00%
-47.2
-51.8
-48.6
-65.2
-4.9
SELB
Quantenna Communications
PCM Inc.
Diana Containerships
Red Robin Gourmet Burgers
Liberty TripAdvisor A
3.87%
Bankrate.com avg†:
10.05
2.82
21.41
19.00
10.37
Selecta Biosciences
Teligent
Five Prime Therapeutics
Mallinckrodt
TrueCar
112.6
841.7
405.3
...
19.9
s
U.S. consumer rates
28.00
9.54
60.98
68.12
21.75
...
36.6
-51.8
49.5
...
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
10.36 -12.17 -54.02
2.96 -2.29 -43.62
25.86 -17.90 -40.90
20.11 -11.07 -35.50
10.58 -5.76 -35.25
2.53
5.50
4.56
5.59
2.13
10.15 4.36
12.50 0.76
30.48 3.96
48.00 10.81
19.07 12.85
TOPS
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
52-Week
Low
% chg
20.76
19.60
18.31
18.13
17.23
TOP Ships
Valeant Pharm Intl
Rand Logistics
Finl Select Sector SPDR
Bank of America
NYSE Arca
High
Symbol
1.74
1.96
4.27
7.32
2.30
Symbol
Nasdaq
Total volume*2,173,248,910 224,755,166
Adv. volume*1,019,865,235 69,032,078
Decl. volume*1,116,547,974 155,364,804
Issues traded
3,081
1,322
Advances
839
411
Declines
2,096
882
Unchanged
146
29
New highs
148
170
New lows
77
40
Closing tick
114
11
Closing Arms†
0.44
0.99
Block trades*
7,667
1,293
Latest Session
Close Net chg % chg
Company
10.12
LOV.W 11.96
XOMA 27.59
CIFS
47.70
VIRT
15.65
Company
Total volume* 903,203,018 11,776,168
Adv. volume* 356,040,326 3,068,340
Decl. volume* 534,908,200 8,204,036
Issues traded
3,071
331
Advances
1,271
137
Declines
1,703
177
Unchanged
97
17
New highs
167
4
New lows
63
5
Closing tick
466
37
Closing Arms†
1.06
2.05
Block trades*
6,881
121
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
-16.34
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Interest rate
NYSE NYSE Amer.
Most-active issues in late trading
13.5
15.0
2591.13
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Discovery Comms A
Value Line
World
23557.23 18332.74
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
613.89
-2.58
-0.42
616.46
532.01
191.85
57.20
3.152
1273.70
-0.72
-0.15
0.018
-5.70
-0.37 195.14
57.35
-0.26
3.93
0.57
-0.45 1346.00
166.50
42.53
2.56
1127.80
% Chg
14.76
YTD
% chg
8.22
4.52 -0.35
6.48
27.17
19.71 -15.36
0.02 10.76
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B11
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
High hi lo
Low
Open
Settle
3.1150
3.1565
3.1150
3.1660
3.0785
3.0830
1276.80
1282.60
1286.70
1288.70
1292.00
1304.20
Nov
Dec
Feb'18
April
June
Dec
1276.80
1282.80
1287.00
1288.70
1292.90
1304.70
1270.40
1272.30
1276.80
1282.10
1285.10
1298.60
Palladium (NYM) - 50 troy oz.; $ per troy oz.
998.15
988.95
982.00
Dec
March'18
June
1000.00
990.85
982.00 s
1273.70
1275.80
1280.10
1284.20
1288.30
1300.60
990.65
983.90
979.50
Dec
347.75
348.25
346.25
347.75
–.25
March'18 361.25 361.50
359.75
361.00
–.50
Oats (CBT)-5,000 bu.; cents per bu.
Dec
268.50
271.00
264.00
270.50
1.50
March'18 273.00 273.00
267.75
272.75
.50
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
986.00
988.25
981.75
986.00
2.00
Jan'18
994.00
998.75
991.25
996.00
2.00
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
316.70
317.40
315.00
315.50
–.60
Jan'18
318.50
319.40
317.10
317.70
–.40
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
34.66
35.12
34.61
35.02
.29
Jan'18
34.86
35.29
34.77
35.18
.29
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1133.50 1133.50
1133.50 1124.00
…
Jan'18
1149.00 1166.50
1145.00 1151.50
–.50
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
430.25
431.00
424.00
427.25 –3.50
March'18 448.00 448.25
441.25
444.75 –3.50
Wheat (KC)-5,000 bu.; cents per bu.
Dec
428.50
429.75
423.25
426.50 –3.50
March'18 446.00 446.75
440.75
443.75 –3.25
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
631.00
635.75
626.75
634.75
3.75
March'18 644.00 646.50
639.50
646.00
2.00
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Nov
160.400 160.450
158.875 159.875 –.275
Jan'18
161.250 161.250
159.400 160.525 –.350
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec
125.250 125.600
123.500 124.625 –.700
Feb'18
130.575 130.825
129.275 130.375 –.275
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
64.600
64.600
63.600
63.925 –.700
Feb'18
72.025
72.225
70.625
70.875 –1.350
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Nov
463.00
467.40
460.60
464.80
3.20
Jan'18
452.50
459.60 s
452.40
457.10
7.50
Milk (CME)-200,000 lbs., cents per lb.
Nov
16.54
16.59
16.44
16.47
–.09
Dec
15.53
15.61
t
15.38
15.42
–.20
Platinum (NYM)-50 troy oz.; $ per troy oz.
928.30
937.90
Nov
Jan'18
928.70
937.90
928.30
922.00
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.925
17.230
Nov
Dec
16.925
17.240
16.925
16.920
–5.70
188
–5.80 358,661
–5.80 114,580
–5.80 17,494
–5.70 15,183
–5.80 11,045
994.10
986.55
980.45
–1.00
–0.55
–0.55
29,564
5,600
98
922.10
925.30
–8.90
–9.70
10
69,615
16.905 –0.290
10
16.940 –0.295 138,297
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
57.27
57.49
57.59
57.62
57.04
54.78
Dec
Jan'18
Feb
March
June
Dec
57.69
57.90
58.02 s
58.02 s
57.42
55.24
56.83
57.06
57.23
57.28
56.80
54.70
57.20
57.43
57.59
57.63
57.21
55.12
–0.15
–0.14
–0.11
–0.09
…
0.08
523,646
376,001
166,993
254,447
223,266
268,556
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.9373
1.9395
Dec
Jan'18
1.9460
1.9485
1.9169
1.9224
1.9219 –.0203 127,127
1.9273 –.0176 89,020
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.8247
1.7966
Dec
Jan'18
1.8350
1.8076 s
1.8025
1.7809
1.8153 –.0147 146,715
1.7933 –.0084 95,707
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
3.125
3.222
3.220
3.182
2.950
2.924
Dec
Jan'18
Feb
March
April
May
3.176
3.272
3.272
3.230
2.971
2.943
3.088
3.188
3.191
3.154
2.928
2.906
3.152
3.251
3.252
3.212
2.965
2.938
.018
.019
.021
.023
.012
.010
Open
interest
Chg
Corn (CBT)-5,000 bu.; cents per bu.
3.0825 –0.0680
749
3.0890 –0.0685 146,661
Gold (CMX)-100 troy oz.; $ per troy oz.
Settle
Agriculture Futures
Open
Chg interest
Copper-High (CMX)-25,000 lbs.; $ per lb.
Nov
Dec
Contract
High hilo
Low
273,456
237,028
89,122
172,189
120,273
79,885
732,486
393,105
4,400
2,917
3,798
326,439
116,111
98,959
137,371
110,675
149,189
102,723
34,452
26,800
7,363
30,130
121,797
110,283
93,921
72,329
503
5,615
4,517
4,231
Cash Prices | WSJ.com/commodities
Tuesday, November 7, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Tuesday
Tuesday
17.0050
12768
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
n.a.
n.a.
3.080
3.040
3.080
2.730
2.920
2.170
2.960
57.850
11.750
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Tuesday
Other metals
LBMA Platinum Price PM
*919.0
Platinum,Engelhard industrial
929.0
Platinum,Engelhard fabricated
1029.0
Palladium,Engelhard industrial
1006.0
Palladium,Engelhard fabricated
1106.0
Aluminum, LME, $ per metric ton
*2152.0
Copper,Comex spot
3.0825
Iron Ore, 62% Fe CFR China-s
62.3
Shredded Scrap, US Midwest-s,w
n.a.
Steel, HRC USA, FOB Midwest Mill-s
615
Food
Gold, per troy oz
1281.82
1377.96
1275.60
1415.92
*1271.60
*1270.90
1326.47
1339.22
1339.22
1545.81
1253.20
1339.22
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
17.1200
20.5440
16.9600
21.2000
£12.9500
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6150
0.6732
*79.50
68.500
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
75
3.1700
91.0
492.9
225
88
220
3.0050
370.00
24.00
7.6838
34.5000
0.2450
n.a.
0.3415
0.2600
n.a.
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 11/6
Source: WSJ Market Data Group
November 7, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Sept. index
level
Chg From (%)
Aug. '17 Sept. '16
U.S. consumer price index
0.53
0.19
246.819
252.941
All items
Core
2.2
1.7
Week
ago
1.035 1.020 1.300 0.270
1.185 1.130 1.185 0.420
1.300 1.260 1.300 0.535
4 weeks
13 weeks
26 weeks
52-Week
High
Low
30-year mortgage yields
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
0.00
0.50
0.25
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.24
1.18
U.S.
1.38
0.15
52-Week
high
low
1.75
1.75
1.00
1.1100
1.3125
1.0300
1.0700
1.0800
1.2000
1.3125
1.1600
1.1700
1.1900
0.3500
0.5625
0.2500
0.3000
0.3200
Federal funds
Effective rate
High
Low
Bid
Offer
1.1700
1.3125
1.0500
1.1600
1.1700
-0.399
-0.379
-0.322
-0.233
-0.376
-0.325
-0.214
-0.075
-0.405
-0.381
-0.322
-0.238
-0.372
-0.331
-0.276
-0.185
Value
Traded
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.276
-0.191
52-Week
High
Low
DTCC GCF Repo Index
3.00
3.00
3.00
1.160 31.920 1.366 0.244
1.154 111.390 1.506 0.257
Treasury
MBS
2.25
Open Implied
Settle Change Interest Rate
1.31
1.26
1.31
0.62
DTCC GCF Repo Index Futures
Libor
Treasury Nov
Treasury Dec
Treasury Jan
1.24389 1.24333 1.24424 0.53644
1.40258 1.38122 1.40258 0.88233
Discount
1.75
-0.372
-0.329
-0.275
-0.190
Latest
Commercial paper (AA financial)
One month
Three month
U.S. government rates
Week
ago
Call money
90 days
Overnight repurchase
One month
Three month
Six month
One year
Other short-term rates
Latest
-0.400
-0.378
-0.314
-0.238
Euro interbank offered rate (Euribor)
3.429 3.466 3.865 3.041
3.450 3.486 3.899 3.071
Policy Rates
Euro zone
Switzerland
Britain
Australia
One month
Three month
Six month
One year
98.840 -0.005 8218 1.160
98.695 -0.005 2069 1.305
98.600 -0.005 475 1.400
Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Dividend Changes
Dividend announcements from November 7.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
EMC Insurance Group
Jones Lang LaSalle
LCI Industries
Microchip Technology
Primoris Services
Snap-On
Solar Capital
SLRC
3.1 .22 /.21 Q
0.5 .37 /.35 SA
1.9 .55 /.50 Q
1.6 .3625 /.362 Q
0.9 .06 /.055 Q
2.1 .82 /.71 Q
7.5 .41 /.40 Q
Nov27 /Nov20
Dec15 /Nov16
Dec01 /Nov17
Dec05 /Nov21
Jan15 /Dec29
Dec08 /Nov17
Apr03 /Mar22
OCIP
4.6
Dec08 /Nov17
EMCI
JLL
LCII
MCHP
PRIM
SNA
Reduced
OCI Partners
.08 /.12
Q
Initial
Hamilton Beach Brands
.085
HBB
Dec15 /Dec01
Funds and investment companies
ASA Gold & Prec Metals
Eagle Capital Growth Fund
Flaherty & Crumrine
Flaherty & Crumrine Dyn
Flaherty & Crumrine Pfd
Flaherty & Crumrine Pfd
Flaherty & Crumrine TR Fd
FlexShares Core Sel Bd Fd
Gl X MLP & Engy Infr
ASA
GRF
PFD
DFP
FFC
PFO
FLC
BNDC
MLPX
0.4
6.3
6.4
7.1
6.8
6.8
7.1
2.4
4.2
.02 SA
A
.51
M
.082
M
.155
M
.119
M
.069
M
.126
.05029 M
Q
.1395
Nov28 /Nov13
Dec28 /Nov24
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov13 /Nov08
Nov16 /Nov08
Company
Symbol
Gl X Yieldco Index
Global X MLP ETF
Liberty All-Star Equity
Liberty All-Star Growth
Salient Midstream & MLP
Tortoise Energy
Tortoise Engy Ind Fd
Tortoise MLP Fund
Tortoise P&Engy Infrstr
Tortoise P&Engy Infrstr
Tortoise P&Engy Infrstr
Tortoise Pipeline & Engy
YLCO
MLPA
USA
ASG
SMM
TYG
NDP
NTG
TPZ
TPZ
TPZ
TTP
Amount
Yld % New/Old Frq
4.2
8.1
11.0
8.1
9.1
9.6
13.2
9.6
7.4
7.4
7.4
9.0
.1304
.1985
.17
.11
.244
.655
.4375
.4225
.125
.125
.125
.4075
Payable /
Record
Q
Q
Q
Q
Q
Q
Q
Q
M
M
M
Q
Nov16 /Nov08
Nov16 /Nov08
Jan02 /Nov17
Jan02 /Nov17
Nov29 /Nov17
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Dec29 /Dec22
Jan31 /Jan24
Feb28 /Feb21
Nov30 /Nov22
Q
.1425
.00526 M
.00579 M
Q
.435
Q
.23
.72154 SA
Nov29 /Nov15
Jan09 /Dec05
Jan09 /Dec05
Dec29 /Nov30
Dec21 /Dec07
Jan02 /Nov13
Foreign
Assured Guaranty
Banco Bradesco Ord ADR
Banco Bradesco Pref ADR
Brookfield Infrastructure
Franco-Nevada
Westpac Banking ADR
WBK
1.6
0.7
0.7
4.0
1.1
5.8
AFG
1.3
AGO
BBDO
BBD
BIP
FNV
Special
American Financial Group
2.00
–.85 106,268
–.85 74,556
.16 409,655
.11 135,565
–.24
…
2,826
1,806
–.78
–.64
93,066
98,523
–.35
.20
47
5,873
Nov27 /Nov17
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Contract
High hilo
Low
Open
Settle
Open
interest
Chg
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov
Dec
.8791
.8805
.8796
.8809
.8748
.8760
.8785 –.0007
2,582
.8797 –.0007 276,494
Nov
Dec
.7817
.7872
.7866
.7872
.7808
.7803
.7823 –.0040
1,283
.7825 –.0040 144,523
Nov
Dec
1.3175
1.3185
1.3175
1.3192
1.3115
1.3123
1.3169 –.0006
1,195
1.3181 –.0006 171,101
Dec
March'18
1.0052
1.0100
1.0052
1.0119
1.0006
1.0076
1.0028 –.0019
1.0098 –.0018
.7687
.7684
.7679
.7691
.7676
.7667
.7697
.7698
.7689
.7691
.7685
.7667
.7628
.7624
.7624
.7622
.7622
.7667
Nov
Dec
.05248
.05221
.05248
.05221
.05207
.05168
.05202 –.00041
23
.05171 –.00041 175,718
Nov
Dec
1.1615
1.1636
1.1618
1.1641
1.1561
1.1579
1.1591 –.0020
5,427
1.1612 –.0020 427,940
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Nov
Dec
Jan'18
Feb
March
June
.7641
.7639
.7637
.7636
.7635
.7632
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
154-090 154-240
153-290 154-220
15.0 741,781
March'18 153-010 153-190
152-250 153-170
15.0 10,360
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
125-125 125-150
125-060 125-135
2.0 3,150,532
March'18 125-015 125-055
124-295 125-045
2.0 35,147
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-092 117-100
117-057 117-090
.2 3,100,428
March'18 117-000 117-032
116-310 117-022
.5 43,956
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-202 107-205
107-197 107-202
–.2 1,724,027
March'18 107-150 107-157
107-150 107-155
–.2 36,262
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Nov
98.845
98.845
98.843
98.843
… 212,214
Jan'18
98.615
98.620
t 98.610
98.620
… 352,351
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.438 101.531
101.344 101.516
.078 28,643
1 Month Libor (CME)-$3,000,000; pts of 100%
Nov
...
...
... 98.7500
…
928
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5825 98.5825
98.5800 98.5800 –.0025 94,776
Dec
98.4750 98.4800
98.4650 98.4650 –.0100 1,657,317
March'18 98.3250 98.3300
98.3200 98.3200 –.0100 1,281,013
Dec
98.0700 98.0700
98.0550 98.0650 –.0050 1,625,848
Euro (CME)-€125,000; $ per €
t
79,413
198
–.0046
1,363
–.0046 119,485
–.0046
790
–.0046
476
–.0046
949
–.0046
244
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23501
23475
23557 s
23548 s
23414
23410
23488
23481
2588.20
2593.30 s
2581.00
2586.80
S&P 500 Index (CME)-$250 x index
Dec
Mini S&P 500 (CME)-$50 x index
1 156,347
4
1,690
–1.90
62,325
Dec
2587.75 2593.50 s
2580.75 2586.75 –2.00 3,158,316
March'18 2588.50 2593.75 s 2581.50 2587.25 –1.75 73,058
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1842.10 1846.50 s
1823.50 1829.90 –12.40 92,475
Mini Nasdaq 100 (CME)-$20 x index
Dec
6311.5
6331.5 s
6296.3
6316.0
2.5 272,003
March'18 6322.5 6345.0 s
6311.0
6331.0
3.8
1,870
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1497.50 1500.70
1474.20 1477.60 –19.50 67,085
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1435.60 1437.70 s
1430.30 1433.00 –1.60
265
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
94.63
95.07
94.60
94.80
.14 48,768
March'18
94.35
94.76
94.35
94.51
.13
2,394
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.5
1946.20
5.9
U.S. Corporate
10.1 Long term
3871.22
4.4 Double-A-rated
568.62
6.5
719.83
7.4
Yield (%)
Latest Low High
Index
2.5
Mortgage-Backed
1957.25
2.0
Ginnie Mae (GNMA) 2.770 2.240 3.090
3.160 3.000 3.520
1168.21
2.7
Fannie mae (FNMA) 2.830 2.360 3.120
2.720 2.420 3.010
1798.88
2.8
Freddie Mac (FHLMC) 2.840 2.370 3.130
4.100 4.100 4.710
523.70
2.650 2.350 2.870
366.51
Triple-B-rated
3.440 3.340 3.870
411.86
398.09
High Yield Bonds Merrill Lynch
417.16
YTD total
return (%)
1991.29
2.580 2.160 2.790
U.S. Aggregate
4.0 Intermediate
2624.09
Total
return
close
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
High Yield Constrained 5.567 5.373 6.858
2.820 2.330 3.120
5.0 Muni Master
1.935 1.689 2.516
7-12 year
1.937 1.688 2.618
6.8
12-22 year
2.352 2.137 3.047
7.3
22-plus year
2.787 2.609 3.622
5.5
Global Government J.P. Morgan†
Triple-C-rated
10.505 9.584 13.189
545.88
1.7
Global Government 1.380 1.110 1.560
2861.82
6.6
High Yield 100
5.251 4.948 6.448
759.18
0.8
Canada
378.90
7.6
Global High Yield Constrained 5.054 4.934 6.450
n.a.
308.77
7.6
Europe High Yield Constrained 1.897 1.897 3.814
715.65
8.8
418.34
511.02
U.S Agency Bloomberg Barclays
1642.07
2.3
U.S Agency
1.980 1.390 2.010
288.56
1467.08
1.4
10-20 years
1.830 1.210 1.840
564.08
20-plus years
2.880 2.730 3.460
922.61
2.810 2.510 3.090
797.00
8.2
3382.19
5.0 Yankee
2463.06
n.a.
1.960 1.470 2.190
EMU§
n.a. n.a. n.a.
1.3
France
0.760 0.570 1.210
Germany
0.410 0.210 0.620
0.1
Japan
0.390 0.170 0.460
Netherlands
0.530 0.340 0.760
U.K.
1.570 1.340 1.790
-0.7
-0.4
1.0
7.8
Emerging Markets ** 5.618 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
1.500
2.250
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.621
2.316
1.520
2.361
0.822
1.828
1.794 s
2.592 s
l
1.781
1.931
1.665
16.5
16.1
l
2.582
2.824
2.359
28.5
26.6
53.1
France 2 -0.621 t
10 0.554 t
l
-0.601
-0.494
-222.1
-142.9
l
0.593
0.735
-172.3
-136.7
Germany 2 -0.764 t
10 0.328 t
l
-0.760
-0.691
l
0.340
Italy 2 -0.251 t
10 1.702 t
l
l
Japan 2 -0.190 t
10 0.031 s
Australia 2
10
0.500
Year ago
l
2.750
0.000
Month ago
U.S. 2 1.629 s
10 2.308 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
0.050
2.050
Euro Libor
Fannie Mae
30 days
60 days
—52-WEEK—
High Low
1.59809 1.57511 1.59809 1.24267
1.86844 1.84844 1.86844 1.55622
Six month
One year
Secondary market
Prime rates
U.S.
Canada
Japan
Week
Latest ago
Treasury bill auction
International rates
Latest
—52-WEEK—
High Low
46 56,634
30 125,797
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
2.750
Week
Latest ago
Inflation
Open
interest
Interest Rate Futures
Country/
Coupon (%) Maturity, in years
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Chg
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
2,121
2,185
2,104
2,163
March'18
2,115
2,158
2,096
2,139
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
125.50
125.80
123.10
124.70
March'18 129.05 129.30
126.60
128.20
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.56
14.76
14.43
14.72
May
14.63
14.80
14.51
14.76
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March
27.24
27.24
26.66
27.00
May
27.15
27.15
27.15
27.15
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec
68.85
68.89
68.01
68.07
March'18
69.05
69.14
68.42
68.46
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
161.35
161.35
159.80
160.05
Jan'18
159.95
160.60
158.80
160.10
2786.99
192.80
179.12
0.8635
2.2100
170.00
163.25
71.25
n.a.
1.2464
1.4489
1.0150
15.80
n.a.
66.65
1.1635
0.9193
n.a.
172.13
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
Settle
U.S. Corporate Indexes Bloomberg Barclays
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
Fibers and Textiles
Metals
311.50
9.4450
7.7225
4.3700
3.6900
5.2863
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Contract
High hilo
Low
Open
30
9,348
268,639
149,828
WSJ.com/commodities
0.100
0.100
2.750
1.450
-0.607 -225.0
0.461
-175.4
84.3
-238.1
-145.5
0.461
-0.633 -239.3
0.156 -198.0
-197.6
-167.2
-0.230
-0.117
-0.025
-188.0
-185.1
-84.7
1.780
2.148
1.643
-60.6
-53.5
-18.5
l
-0.184
-0.139
-0.256
-107.7
0.024
0.055
-181.8
-0.051 -227.7
-180.4
l
-229.2
-187.9
Spain 2 -0.394 t
10 1.413 t
l
-0.374
-0.260
-0.218
-202.3
-199.4
-104.0
l
1.466
1.661
1.247
-89.5
-85.0
-58.1
0.437 t
1.234 t
l
0.447
0.435
0.195
-119.2
-117.4
-62.7
l
1.259
1.369
1.096
-107.3
-105.7
-73.2
1.750
U.K. 2
4.250
10
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
VMware
J.M. Smucker
Motorola Solutions
Pitney Bowes
VMW
SJM
MSI
PBI
2.300 Aug. 21, ’20
3.500 March 15, ’25
4.000 Sept. 1, ’24
3.625 Sept. 15, ’20
42
52
121
261
–28
–27
–23
–14
64
75
n.a.
n.a.
120.43
101.77
92.11
10.66
1.02
1.78
–0.35
–2.91
Morgan Stanley
Hess
Bristol–Myers Squibb
Energy Transfer
MS
HES
BMY
ETP
7.250
April 1, ’32
5.800
April 1, ’47
4.500 March 1, ’44
6.500
Feb. 1, ’42
144
227
81
252
–10
–9
–7
–7
n.a.
240
n.a.
253
49.39
47.95
61.91
17.34
–1.50
–0.58
0.37
0.87
…And spreads that widened the most
Viacom
Teva Pharmaceutical Finance IV
Oracle
DIRECTV Holdings
VIA
TEVA
ORCL
DTV
5.875 Feb. 28, ’57
2.250 March 18, ’20
3.850 July 15, ’36
3.800 March 15, ’22
342
230
94
83
31
25
24
18
330
140
62
n.a.
30.25
…
50.49
…
1.51
…
0.18
…
Pitney Bowes
Walt Disney
Microsoft
Apple
PBI
DIS
MSFT
AAPL
4.700
4.125
3.450
2.450
424
101
70
68
16
13
13
11
318
n.a.
47
n.a.
10.66
101.61
84.27
174.81
–2.91
0.96
–0.24
0.32
Bond Price as % of face value
Current
One-day change
Last week
April 1, ’23
June 1, ’44
Aug. 8, ’36
Aug. 4, ’26
High-yield issues with the biggest price increases…
Issuer
Symbol
Valeant Pharmaceuticals International
Tenet Healthcare
Hexion
QEP Resources
VRXCN
THC
HXN
QEP
5.500 March 1, ’23
6.750 June 15, ’23
6.625 April 15, ’20
5.250
May 1, ’23
Concordia Hlthcr
California Resources
Denbury Resources
Intelsat Luxembourg S.A.
CXRCN
CRC
DNR
INTEL
7.000
8.000
4.625
7.750
Coupon (%)
Maturity
April 15, ’23
Dec. 15, ’22
July 15, ’23
June 1, ’21
85.625
92.500
91.500
101.250
10.000
75.000
64.000
64.750
2.44
2.00
1.75
1.75
1.50
1.25
1.25
1.25
Stock Performance
Close ($)
% chg
84.250
94.250
89.000
98.875
...
13.21
...
10.00
...
4.43
...
–3.29
n.a.
66.375
57.250
63.750
...
16.04
1.66
...
...
13.52
7.79
...
94.000
96.000
107.375
74.000
…
20.94
…
…
…
–17.53
…
…
101.500
87.250
72.250
92.031
...
4.46
...
16.22
...
3.00
...
–2.70
…And with the biggest price decreases
Mallinckrodt International Finance S.A.
Hertz
Sprint Capital
Revlon Consumer Products
MNK
HTZ
S
REV
5.625
6.250
6.875
6.250
Oct. 15, ’23
Oct. 15, ’22
Nov. 15, ’28
Aug. 1, ’24
Embarq
Community Health Systems
Iheartcommunications
CenturyLink
EQ
CYH
IHRT
CTL
7.995
June 1, ’36
7.125 July 15, ’20
9.000 March 1, ’21
7.600 Sept. 15, ’39
88.250 –5.75
93.563
100.875
64.750
96.500
78.500
69.750
85.031
–2.44
–2.38
–2.25
–2.13
–2.00
–2.00
–1.94
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Wednesday, November 8, 2017
* ***
THE WALL STREET JOURNAL.
BANKING & FINANCE
Rich Brothers Feud Over India Telecoms
BY MANJU DALAL
India’s richest man is muscling into the country’s highly
competitive telecommunications market, and his first victim could be his own brother.
A deep-seated rivalry between Indian billionaires
Mukesh and Anil Ambani was
amplified this week when Reliance Communications Ltd.,
one of the country’s major
wireless carriers, said it is
headed toward a bond default.
Reliance Communications,
also known as RCom, late Mon-
day disclosed it had missed a
$9.75 million interest payment
on $300 million in U.S. dollar
bonds it sold in mid-2015. The
company has seven days to
make the payment, but investors and analysts say RCom is
unlikely to meet its obligations. The company has 457.5
billion Indian rupees ($7.08 billion) in outstanding debt.
Controlled by 58-year-old
billionaire Anil Ambani, the
telecommunications company
has languished in recent years.
RCom borrowed heavily to
fund its growth, creating a
pile of outstanding debt.
RCom’s troubles worsened
over the past year after rival
Reliance Jio Infocomm Ltd.—
run by Mr. Ambani’s richer
and older brother Mukesh—
entered the wireless industry
and began offering free call
and data plans, causing RCom
to lose sales and market share.
Both companies trace roots to
conglomerate Reliance Group,
which was founded by their late
father, Dhirubhai Ambani. After
the patriarch’s death in 2002,
Mukesh Ambani was effectively
left in control of the family busi-
ness. The brothers clashed on
how to run it, and Anil Ambani
pressured his sibling into giving
up RCom and smaller pieces of
the empire in 2005. Over the
years, Mukesh Ambani rose up
the ranks of India’s wealthy to
become the country’s richest
man, with an estimated net
worth of $40.4 billion, according
to Forbes. Anil Ambani is ranked
45th among India’s richest with
a net worth of $2.7 billion.
RCom
was
originally
Mukesh Ambani’s project and
it grew by slashing the prices
for calls. Its rates shook up the
industry, triggering radical
cost cutting and consolidation.
With Reliance Jio, Mukesh
Ambani appears to be following a similar playbook. Despite
being a latecomer, his company was able to sign up more
than 100 million users by basically giving free unlimited 4G
access for months.
RCom previously came close
to defaulting on some convertible bonds in 2012, but ended
up getting a lifeline that year
from some Chinese lenders.
RCom has tried to work out
a debt-restructuring plan to
avoid filing for bankruptcy.
The company has proposed
cutting its total debt and repaying some of its obligations
by selling assets.
On Monday, RCom pointed
to its restructuring plans and
said it is under a “standstill
period” until December 2018.
“Accordingly, for the time being, no payment of interest
and/or principal is being made
to any lenders and/or bondholders,” the company said.
—Eric Bellman
and Debiprasad Nayak
contributed to this article.
Mauritius barred offer
and, concerned about
possible link to scandal
in Malaysia, notified FBI
Two men with links to the
alleged mastermind of a multibillion-dollar Malaysian financial scandal launched a bid
last year to buy a controlling
stake in a bank in Mauritius.
The deal took shape in the
months after the U.S. Justice
By Bradley Hope,
Simon Clark
and Tom Wright
Department alleged in a July
2016 civil asset-forfeiture lawsuit that Jho Low, a Malaysian
financier, helped divert billions of dollars from state investment fund 1Malaysia Development Bhd.—and at times
used small banks to help launder the money. Mr. Low has
denied wrongdoing.
In late 2016, former Goldman Sachs Group Inc. partner
Tim Leissner, who had been
the primary Goldman executive to handle the bank’s 1MDB
account, and Thai businessman Phengphian Laogumnerd,
a friend of Mr. Low’s, worked
together in an effort to buy
Qatari-owned Century Banking Corp. of Mauritius.
The central bank of the Indian Ocean island nation
blocked the transaction and,
concerned about a possible connection between Mr. Leissner
and the global 1MDB scandal,
notified the U.S. Federal Bureau
of Investigation about the bid,
according to people briefed on
the central bank’s actions.
Mr. Leissner, who is German, had been Goldman’s
Southeast Asia chairman before it suspended him for writing an unauthorized letter of
recommendation for Mr. Low.
Mr. Leissner handled 1MDB
for the Wall Street bank from
the fund’s creation in 2009,
helping raise billions of dollars
of bonds for the fund, and
worked with Mr. Low from the
time Mr. Low was an adviser to
a fund that eventually became
1MDB, according to people familiar with their relationship.
The Justice Department is
investigating the nature of Mr.
Leissner’s relationship with
Mr. Low, according to people
familiar with the probe. Mr.
Leissner has said he had only
a passing acquaintance with
Mr. Low and that work he did
while at Goldman on the 1MDB
account was above board.
Goldman has consistently
said it did nothing wrong and
had no way of knowing there
might be fraud connected to
1MDB. Neither Goldman nor
Mr. Leissner has been accused
of wrongdoing in relationship
to 1MDB.
Mr. Phengphian also has a
business connection with Mr.
Low: In July 2017, he acquired
from a Low family trust a controlling stake in a lingerie
business in London.
Mr. Low has said he would
fight civil cases filed by the
Justice Department against assets it says were purchased
with stolen 1MDB funds. Those
cases were recently put on
hold by a judge after the Justice Department requested
more time to finish criminal
investigations into the alleged
1MDB fraud and related asset
DIMITRIOS KAMBOURIS/GETTY IMAGES
Men Linked to
1MDB Financier
Failed in Bank Bid
Jho Low spoke at a 2014 event in New York. Two men linked to the Malaysian financier tried to buy a stake in a bank in Mauritius.
purchases.
Lawyers for Mr. Low declined to comment on the Century Banking deal. A lawyer
for Mr. Leissner said his client
did nothing illegal in the deal.
1MDB has denied any funds
were misappropriated or any
wrongdoing on its part, and
pledged to cooperate with any
“lawful” investigation. Malaysian authorities cleared the
fund of wrongdoing, though it
remains under investigation in
the U.S. and several other
countries.
Mr. Low has said he was
only an informal adviser to
1MDB. U.S. investigators say
he was pulling strings from
behind the scenes, arranging
deals to divert funds.
The Justice Department
said in its asset-forfeiture
cases that Mr. Low and alleged
co-conspirators at times laundered money through small financial institutions that they
thought would attract little attention.
The Mauritius bank, Century Banking, is owned by
Ghanim Bin Saad Al Saad
Group of Qatar. It opened in
2011 and is located in the capital, Port Louis.
Months after Mr. Leissner
Ex-Goldman
partner Tim
Leissner
applied to buy
a controlling
stake in a bank
in Mauritius.
quit Goldman Sachs, following
his suspension, in March 2016,
Mr. Phengphian worked with
him to help complete a purchase of Century Banking, according to people familiar
with the matter.
Mr. Phengphian, a manager
of Songkhla Finishing Co., a
technology contracting company in Thailand, would fund
the deal, the people said. Lawyers for Mr. Phengphian declined to comment.
On Nov. 11 of last year, Mr.
Phengphian became a member
of the Century board.
In late December 2016 or
early this year, Mr. Leissner
applied to Mauritius authorities to acquire a controlling
stake in Century Banking and
become an executive and
board member, according to
Mr. Leissner’s lawyer, Marc
Harris, and Century Banking
chief executive Muniruddeen
Lallmahamood.
The Bank of Mauritius, the
nation’s central bank, soon
launched an investigation into
the transaction after it learned
that Mr. Leissner was associated with 1MDB and Mr. Low,
according to people familiar
with the matter.
The central bank later rejected Mr. Leissner’s application for “compliance concerns,” said Mr. Harris, the
lawyer. Mr. Harris didn’t identify those concerns.
Mr. Lallmahamood declined
to comment on Mr. Leissner’s
application, except to say it
wasn’t approved by the central
bank.
In response to questions to
the Bank of Mauritius about
the Century Banking bid, Yandraduth Googoolye, first deputy governor of the central
bank, said: “You may rest assured that the Bank is exercising its regulatory duties in
terms of its statutory powers.”
Mr. Phengphian is now
chairman of Century Banking’s
board, appointed to the position in January after what the
bank’s CEO, Mr. Lallmahamood, described as thorough
due diligence in line with
global best practices.
State Street Names Do-It-Yourself Quant Upstart Hits a Snag
CEO’s Successor
BY JUSTIN BAER
State Street Corp. Chief Executive Joseph Hooley and
President Michael Rogers plan
to retire, the giant custody
bank said Tuesday as it embarks on leadership changes.
Former Fidelity Investments executive Ron O’Hanley
will succeed Mr. Hooley as
CEO by the end of 2018, the
company said. State Street
this week appointed Mr.
O’Hanley president and chief
operating officer, succeeding
Mr. Rogers.
At Fidelity, Ron
O’Hanley was
president of asset
management.
“He’s the logical choice,”
said Mr. Hooley, 60 years old,
who joined the bank 31 years
ago. “Ron represents an individual with great vision, and a
strategic mind. He has lived in
the shoes of our core client set
for most of his career.”
In his new roles, Mr. O’Hanley said he would be spending
a lot of time on the bank’s
technology initiatives, both in
developing new products and
in making sure they meet clients’ needs. “That will be what
distinguishes us from our
competitors,” he said.
“The life of the asset manager and the asset owner has
just become more complicated,” Mr. O’Hanley said of
the pressures many in the industry now face.
Mr. O’Hanley, 60, was previously in charge of State’s
Street’s asset-management
business, where he pushed to
round out the firm’s investing
offerings beyond index-tracking funds.
He joined the Boston company in 2015 from Fidelity,
where he was president of asset management and corporate
services.
Mr. Rogers, 60, joined State
Street through the 2007 acquisition of Investors Financial
Services Corp., a smaller custody bank once known in the
industry as “Little State
Street.”
Mr. Rogers had been the
custody bank’s president, and
was persuaded by Mr. Hooley,
then State Street’s vice chairman, to remain at the company following the sale. He
stayed but began to discuss
his eventual exit with Mr.
Hooley as the CEO was starting to set in motion his own
succession plan, one person
familiar with the matter said.
Mr. Rogers will retire from the
company at the end of 2017,
the company said.
State Street joins rivals
Bank of New York Mellon and
Northern Trust Corp. in unveiling succession plans this
year, a mark of an industry
adapting to sweeping changes.
Many of the banks’ top clients
are asset managers under immense pressure to lower costs
and find new areas of growth
as investors shift assets to
ETFs and other low-cost
funds.
A quant-trading firm backed
by hedge-fund investor Steven
A. Cohen and venture-capital
firm Andreessen Horowitz
has run into early problems.
Quantopian gained attention by creating a network of
160,000 users who developed
more than 600,000 trading algorithms, grabbing the early
lead in an emerging area of
do-it-yourself quant trading.
But in the four months
since it began trading on June
1, Quantopian’s traders have
lost about 3%, according to
people close to the matter. The
S&P 500 rose 6.6% in that period. Given that Quantopian
has earned little revenue, it
likely will need to raise more
cash from investors, something executives hadn’t expected, the people say.
About two months ago,
Quantopian’s chief investment
officer, industry veteran Jonathan Larkin, left the firm, the
people say.
“While we are disappointed
with the initial performance
we have conviction in our investment process and actively
making refinements,” said
John Fawcett, Quantopian’s
chief executive officer. “It’s not
unexpected…we’re investing in
the internal infrastructure of
the company.”
Quantopian was launched in
2011 but gained attention over
the past year amid a rush by
firms into quantitative investing, or trading based on computer models and algorithms.
Quantopian’s position was
helped in part by an investment of as much as $250 million from the venture capital
arm of Mr. Cohen’s firm,
LUCY NICHOLSON/REUTERS
BY GREGORY ZUCKERMAN
Steven A. Cohen’s firm has made a large investment in Quantopian, which launched in 2011.
Point72 Asset Management
LP, along with backing from
Andreesen. The support lent
credibility to Quantopian’s
goal of enabling individuals
from 190 countries to come up
with market-beating mathematical models in their spare
time.
Still, Quantopian manages
about $50 million in a hedge
fund, a tiny amount in that
world and well below the $250
million executives anticipated
at the end of this year, according to the people familiar. The
firm manages some money in a
separately managed account
for Mr. Cohen’s firm.
Quantopian is a young firm
and could yet turn its fortunes
around. But the challenges so
far suggest that recruiting and
training mechanical engineers,
nuclear scientists and other
amateurs around the globe to
be quantitative traders may be
more difficult that some had
expected. While some of Quantopian’s traders generated
profits, many of these algorithms had limits to how much
money could be invested with
them, the people said.
Other firms are creating
networks of individuals around
the globe to develop crowdsourced algorithms to trade
stocks, such as San Franciscobased Numerai, which pays its
employees with a digital currency it created. It is too early
to assess the track record of
these firms.
Quantopian’s community of
algorithm authors, which like
many quants face a problem of
dealing with too much data,
will be given new tools to
“clean” their data, or cleanse it
from inaccuracies, the company said. Quantopian may be
able to sell these data-cleaning
capabilities to the growing
number of investment firms
adopting quantitative strategies, the company said.
Late on Tuesday, the Bostonbased firm sent an email to its
community of algorithm authors informing them of Mr.
Larkin’s departure and saying
“the fund is being managed on
an interim basis by other members of the investment
team…the journey to creating
something great is never easy.”
A spokesman for Mr. Cohen
declined to comment.
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THE WALL STREET JOURNAL.
Wednesday, November 8, 2017 | B13
* * * *
MARKETS
CME Plans
To Rein In
Bitcoin’s
Volatility
CME Group Inc. is seeking to
rein in the volatility of bitcoin.
The Chicago-based exchange plans to impose limits
on how much prices of its proposed bitCURRENCIES
coin futures
can fluctuate within a
day, according to a company
document seen by The Wall
Street Journal. CME said last
week that it aims to launch
the new futures market by the
end of the year, subject to regulatory approval.
CME uses such limits in
other markets, such as crude
oil, gold and stock-market futures, to temporarily halt trading when price swings get out
of control. They are a key way
in which futures exchanges
can try to damp the gyrations
of prices.
But CME—the world’s largest exchange operator—has
never before dealt with something like bitcoin, which is notoriously volatile. It is also
unclear how much impact
CME’s limits will have on bitcoin, since its futures market
has yet to emerge and most
trading in the digital currency
is on exchanges outside CME’s
control.
CME’s trading limits would
kick in when the price of its
bitcoin futures move 7%, 13%
or 20% up or down from the
Limits would kick in
when prices move 7%,
13% or 20% from the
previous day’s close.
previous day’s closing price,
according to the document, in
which the exchange operator
spelled out specifications for
its new contract.
The first two thresholds—
for 7% and 13% moves—are for
“soft” limits, which could potentially trigger a two-minute
pause in trading of bitcoin futures, according to a person
familiar with the matter. The
20% limit is a “hard” cap on
how far CME’s bitcoin futures
could swing on any day, the
person added.
That is akin to the way
CME controls volatility in its
popular E-mini S&P 500 futures contract, which tracks
the S&P 500 stock index. The
E-mini also has three successive price-fluctuation limits at
7%, 13% and 20% during regular trading hours.
A similar nighttime limit
kept S&P 500 futures from
falling more than 5% on Nov.
8, 2016, when news of Donald
Trump’s upset win in the U.S.
presidential election triggered wild volatility in stockmarket futures.
But bitcoin could prove far
wilder than the S&P 500. So
far this year, there have been
two days in which bitcoin’s
price swung more than 20% in
a single day, according to
news site CoinDesk. There
were 11 days in which it
moved at least 13%, and 69 in
which it moved at least 7%.
LUCY NICHOLSON/REUTERS
BY ALEXANDER OSIPOVICH
21st Century Fox stock rose 1.1% after reports that Walt Disney had held discussions to acquire a big chunk of its entertainment business, including its film studio.
S&P 500 Breaks Winning Streak
BY MICHAEL WURSTHORN
AND DAVID HODARI
The S&P 500 drifted lower
Tuesday, snapping the index’s
five-session win streak.
Shares of Priceline Group
and TripAdvisor posted double-digit losses, making them
the S&P 500’s
TUESDAY’S biggest perMARKETS
centage decliners after the
online travel
companies disappointed investors with quarterly results.
Meanwhile, falling bond
yields pressured bank stocks,
and proposed deals swung
shares of chip makers and
media companies.
“Put together a lot of speculative M&A transactions and
earnings and you get a good
cocktail to move markets,”
said Michael Scanlon, a portfolio manager at Manulife Asset Management.
The S&P 500 slipped 0.49
point, or less than 0.1%, to
2590.64. The index has now
gone 45 consecutive trading
days without a decline of 0.5%
or greater, the longest such
streak since 1968.
The Nasdaq Composite fell
18.65 points, or 0.3%, to
6767.78 Tuesday, while the
Dow Jones Industrial Average
eked out a slight gain to
close at a record. The bluechip index rose 8.81 points,
or less than 0.1%, to 23557.23,
its sixth straight session of
gains.
TripAdvisor shed $9.18, or
23%, to $30.35 after the online
travel
booking
company
missed revised sales estimates
as it struggled with users’
shift toward mobile. Priceline—which lost 257.28, or
14%, to 1,645.72—lowered its
profit outlook for the remainder of the year, overshadowing
better-than-expected sales and
earnings.
Banks in the S&P 500
slumped, dragging down the
financials sector of the broad
index by 1.3%.
U.S. government bonds con-
Travel Trouble
Shares of Priceline Group and TripAdvisor led declines in the S&P 500
after the companies’ quarterly reports disappointed investors.
5%
0
Performance, minute by minute
S&P 500
Priceline Group
TripAdvisor
–5
–10
–15
–20
–25
9:30 10
11
noon
Source: WSJ Market Data Group
tinued to strengthen, sending
the yield on the 10-year Treasury note down to 2.309%
from 2.318% Monday. Yields
fall as bond prices rise.
Declining bond yields don’t
bode well for banks, which
earn money on the difference
1
2
3
4
THE WALL STREET JOURNAL.
between what they pay on deposits and what they charge to
lend money.
Broadcom shares fell 6.20,
or 2.2%, to 271.32 as investors
continued to assess the chip
maker’s bid for Qualcomm.
Shares of Qualcomm gained
Japanese Shares Hit 25-Year High
BY SURYATAPA BHATTACHARYA
TOKYO—Japan’s
Nikkei
Stock Average rose to its highest level in a quarter-century,
reaching territory last seen at
the tail end of the “bubble
economy” days.
EQUITIES
A flood of
foreign money
and strong corporate earnings helped drive
the index up 389.25 points, or
1.7%, to 22937.60 on Tuesday,
the highest close since January 1992, though far short of
the record 38915.87 hit in December 1989. At the midday
break Wednesday, the Nikkei
was down 0.3%.
Some of the foreign money
is coming from oil-producing
countries, perhaps prompted
by recent political changes in
Saudi Arabia, said Toshiyuki
Suzuki, senior market economist with Bank of Tokyo-Mitsubishi UFJ.
SMBC Nikko Securities
Chief Executive Yoshihiko Shimizu said some foreign investors are making up for lost
climbed 20% and is up 23 of
the past 25 trading days.
Energy-linked sectors led
the market higher, following a
3% overnight jump in oil
prices. More expensive crude
could lift Japan’s sluggish inflation closer to the central
bank’s 2% target. Among subindexes of the broad Topix index, which covers all issues on
the Tokyo Stock Exchange’s
first section, mining gained
3.6%, marine transportation
advanced 3.1%, and oil and
coal rose 2.8%.
Stocks shrugged off a rise
in the yen against the U.S.
dollar during the trading session. The Tokyo market,
weighted as it is toward export-oriented companies, typically benefits from a weak yen
and suffers when the yen is
strong. But over the past two
months, the Nikkei has
jumped 19% despite only a
slight fall in the yen against
the dollar.
Instead of currency movements, the factors driving
Japanese stocks are stronger
The Long Road Back
The Nikkei Stock Average rose
Tuesday to its highest close
since 1992.
40000
30000
25-year high
20000
10000
0
1990
2000
’10
Note: Monthly data
Source: FactSet
THE WALL STREET JOURNAL.
time, having been late to the
bull market. “Until now, foreign investors hadn’t increased their weighting of
Japan stocks, so that is resulting in a sudden inflow of
funds,” he said.
This year, the Nikkei has
earnings, an improved economy and a better environment
for shareholders.
Toyota Motor Corp. said
Tuesday that it would repurchase up to ¥250 billion ($2.2
billion) of its own shares by
March.
Jesper Koll, head of WisdomTree Japan, said he expected profits for the current
fiscal year, which ends in
March, to be up 25%. “Valuations are attractive and positive earnings momentum is
poised to keep going,” he said
in a note to investors. He forecast the Topix index—which
ended Tuesday at 1813.29, up
1.6%—would hit 2000 within
six months.
Investors may be feeling
emboldened by the Bank of
Japan’s Oct. 31 announcement
that it would maintain its exchange-traded-fund purchases
of about ¥6 trillion a year,
which they take as a sign the
central bank will step in if
stock prices fall.
—Megumi Fujikawa
contributed to this article.
Bond Yield Is Lowest in Weeks, as Taxes Draw Focus
U.S. government bonds
inched higher Tuesday as a
dearth of data on the economic calendar shifted investors’ attention to developments
in
CREDIT
Washington.
MARKETS
The yield on
the benchmark
10-year
U.S.
Treasury note settled at
2.309%—the lowest closing
level since Oct. 17—compared
with 2.318% Monday. Yields
fall as bond prices rise.
Bond prices have risen for
four consecutive days to recoup some of their losses from
October, something some analysts have attributed to relief
among investors over a number of developments that were
expected to potentially jolt the
markets.
Among them: President
Donald Trump nominated Federal Reserve Board governor
OLIVIER DOULIERY/BLOOMBERG NEWS
BY AKANE OTANI
The choice of Jerome Powell as Fed chief eased investors’ fears.
Jerome Powell to be the next
Fed chairman, easing some investors’ fears that Mr. Trump
would choose a candidate
likely to favor a more aggressive pace of interest-rate increases.
And Republicans have run
into conflict over a tax bill,
raising the possibility that
lawmakers will have to scale
back their plans to pass the
overhaul by year’s end.
The initial rollout of the bill
had pressured bonds, sending
the yield on the 10-year Treasury note to its biggest oneday gain since March. A bill
that expands the deficit could
prompt more bond issuance,
weighing on the prices of existing debt.
With few economic reports
scheduled for release this
week, analysts say investors’
attention is likely to stay
homed in on Washington,
where the House Ways and
Means Committee is debating
the tax plan.
“No one is really confident
what kind of tax package we’re
going to get,” said Joe Tanious, senior investment strategist at Bessemer Trust, who
added that the proposal is
likely to change several times
before being signed into law.
A steep cut to the corporate
tax rate could send stocks and
bond yields higher by spurring
inflation, a key threat to government bonds.
Still, Mr. Tanious said, foreign demand for Treasurys
would likely limit any resulting selloff in bonds.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$150,258,850,900
Applications
$50,000,105,900
Accepted bids
$548,872,900
" noncompetitively
$100,000,000
" foreign noncompetitively
99.919500
Auction price (rate)
(1.035%)
1.050%
Coupon equivalent
44.43%
Bids at clearing yield accepted
912796LB3
Cusip number
The bills, dated Nov. 9, 2017, mature on Dec. 7, 2017.
52-WEEK BILLS
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
$66,756,555,600
$20,000,038,100
$236,155,600
$0
98.498500
(1.485%)
1.523%
22.27%
912796PD5
The bills, dated Nov. 9, 2017, mature on Nov. 8, 2018.
THREE-YEAR NOTES
$69,120,749,500
Applications
$26,918,433,500
Accepted bids
$62,228,300
" noncompetitively
$100,000,000
" foreign noncompetitively
100.000000
Auction price (rate)
(1.750%)
1.750%
Interest rate
55.06%
Bids at clearing yield accepted
9128283G3
Cusip number
The notes, dated Nov. 15, 2017, mature on Nov. 15,
2020.
1.58, or 2.5%, to 64.10.
21st Century Fox added 30
cents, or 1.1%, to 27.75 after reports that Walt Disney had
held talks to purchase a large
chunk of the company’s entertainment business, though
those talks have since cooled.
Shares of Disney added 97
cents, or 1%, to 101.61. In 2013,
News Corp, owner of The Wall
Street Journal and other publishing businesses, and 21st
Century Fox, home to the major entertainment assets, were
split into their own businesses.
Robust corporate earnings
have helped push stocks to
fresh highs.
However, sectors such as financials have posted earnings
declines from the year before,
with insurance companies the
biggest drag due to severe
summer storms, says FactSet’s
data.
The Stoxx Europe 600 shed
0.5%, while Japan’s Nikkei
Stock Average rose 1.7% to levels last seen in early 1992.
Oil Prices
Decline as
Geopolitical
Fears Fade
BY STEPHANIE YANG
AND CHRISTOPHER ALESSI
Oil prices edged lower on
Tuesday, as some of the geopolitical fears that took crude
to a two-year high faded.
Light, sweet crude for December deCOMMODITIES livery fell 15
cents,
or
0.3%,
to
$57.20 a barrel on the New
York Mercantile Exchange.
Brent, the global benchmark,
lost 58 cents, or 0.9%, to
$63.69 a barrel.
On Monday, oil prices
jumped to heights not seen
since 2015 after Saudi Arabian
Crown Prince Mohammed bin
Salman had more than five
dozen princes, ministers and
prominent businessmen detained in an effort to tackle alleged corruption in the kingdom. Prices also were
supported after Yemen’s
Houthi rebels fired a ballistic
missile Saturday at the Saudi
capital of Riyadh. The Saudis
shot down the missile before
it reached the city.
Following the rally, analysts
cautioned that the surge in oil
prices may be overdone.
“We’ve covered a lot of
ground very quickly,” said
John Saucer, vice president of
research and analysis at Mobius Risk Group. Oil “looks like
it may have gotten a little bit
ahead of itself.”
Others believe that the geopolitical premium priced into
the market will be short-lived.
“As concerns about geopolitical tensions fade, oil prices
are likely to give back most of
their recent gains,” said
Thomas Pugh, commodities
economist at Capital Economics.
The Organization of the Petroleum Exporting Countries
will hold its official meeting in
Vienna on Nov. 30, at which
some industry watchers speculate the group will extend a
deal to limit production beyond March 2018.
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THE WALL STREET JOURNAL.
B14 | Wednesday, November 8, 2017
MARKETS
What Has Driven Markets Since Election Day
U.S. stocks have surged since Donald Trump’s election a year ago. Investors
last fall attributed a sharp postelection rally to expectations that policy
changes including tax cuts, infrastructure spending and deregulation
would boost U.S. economic growth and corporate profits. So far, progress
on Capitol Hill has been slow, but other factors—including a recovery in
earnings and a gradual increase in interest rates—
have propelled the Dow industrials and other
indexes to one record close after another.
23000
22000
8
3
9
6
5
4
21000
7
20000
2
Nov. 8
Election Day
10
1
DOW JONES INDUSTRIAL AVERAGE
19000
18000
Nov. 2016
1
Dec.
Feb.
Jan. ’17
2
Travel ban (Jan. 27)
When Mr. Trump signed his travel ban,
some investors took it as an early sign
that he would pursue protectionist
policies that could hamper corporate
profits, especially at multinational
companies.
S&P 500 TECHNOLOGY SECTOR
March
April
3
Health bill (March 24)
Investors scaled back expectations that
Mr. Trump’s broader policy agenda
would be enacted, denting stocks and
the dollar, when House Republicans
pulled their bill to repeal and replace the
Affordable Care Act in March.
WSJ DOLLAR INDEX
May
French election
6
250
1.12
88
1.08
1050
225
1025
200
1000
175
975
150
84
1.04
950
125
Nov. 2016 ’17
Nov. 2016 ’17
Nov. 2016 ’17
Nov. 2016 ’17
7
North Korea (Aug. 8)
Strong earnings (July 26)
1075
1.16
Nov. 2016 ’17
8
Debt deal (Sept. 6)
Nov.
$275
92
700
5
Oct.
1100
1000
86
Comey firing (May 9)
Sept.
Boeing reported forecast-beating
earnings for a fifth straight quarter in
July, helping to boost the Dow industrials
and reassure investors that corporate
earnings at many large U.S. firms were
robust. Many investors say earnings are
the main driver of stocks over time.
BOEING STOCK PRICE
$1.20
800
4
Aug.
Mr. Trump unexpectedly fired FBI Director
James Comey, exacerbating investors’
doubts about policy changes. That has been
a boon for bond investors, who feared Mr.
Trump’s agenda would drive up yields and
make outstanding bonds less attractive.
BLOOMBERG BARCLAYS MUNICIPAL
BOND INDEX
94
900
(May 7)
July
Emmanuel Macron’s victory over
far-right candidate Marine Le Pen in the
French presidential election assuaged
some investors’ concerns about
nationalist movements weakening the
European Union, boosting the euro.
HOW MANY DOLLARS ONE EURO BUYS
1100
90
June
Federal Reserve (Sept. 20)
9
Tax overhaul (Sept. 27)
10
Tech rally (Nov. 3)
CBOE VOLATILITY INDEX
When Mr. Trump sided with Democrats
to keep the government funded and its
borrowing limit suspended until
mid-December, it removed one of the
biggest risks investors had been
anticipating and stoked hopes for
progress on stalled legislative priorities.
KBW NASDAQ BANK INDEX
The Federal Reserve signaled it was
penciling in one more interest-rate increase
for 2017–something investors had been
skeptical about after a string of weak
inflation readings. Signs that the Fed was
on course helped push U.S. governmentbond yields higher.
YIELD ON THE 10-YEAR TREASURY NOTE
Investors were encouraged when Mr.
Trump and Republican leaders sketched
out their long-awaited tax plan, with
many saying they expect a cut to the
corporate tax rate to boost earnings–
especially at smaller, domestically
focused firms.
RUSSELL 2000
The Nasdaq Composite has notched its
most records in a calendar year. Recent
gains followed strong earnings reports
from Apple Inc., Google parent Alphabet
Inc., Amazon.com Inc. and other firms
that have helped the Nasdaq outpace
the S&P 500 and Dow industrials.
NASDAQ COMPOSITE
24
100
2.8%
1500
7000
1400
6500
1300
6000
1200
5500
1100
5000
Mr. Trump threatened North Korea with
‘fire and fury’ as rhetoric between the
two countries escalated, interrupting a
period of calm in financial markets and
sending a gauge of expected volatility in
the S&P 500 higher.
20
16
12
8
95
2.6
90
2.4
85
2.2
80
2.0
75
1.8
70
Nov. 2016 ’17
1.6
Nov. 2016 ’17
Nov. 2016 ’17
Sources: FactSet (technology sector); WSJ Market Data Group (indexes, Boeing); Tullett Prebon (euro, Treasury yield); Bloomberg Barclays (municipal bonds)
Reporting by Akane Otani; Graphic by Hanna Sender/THE WALL STREET JOURNAL.
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Rémy’s Shelf Life Has Its Limits
Fruits of the Vine
Market share of cognac houses
by bottles sold and sales
JULIEN FERNANDEZ FOR THE WALL STREET JOURNAL
The world’s supply of cognac is running low. Paying a
high price for the stock of
specialist distiller Rémy
Cointreau may leave a sour
taste.
The French company
makes leading cognac brand
Rémy Martin. The liquor has
been a strong seller in the
U.S. and China.
The shortage was evident
in results from Rémy Martin’s larger rival Hennessy
last month. Majority-owned
and managed by Parisian
luxury group LVMH Moët
Hennessy Louis Vuitton,
Hennessy dominates the U.S.
cognac market with almost
two-thirds of bottles sold.
The brand’s unit sales fell
year over year in the third
quarter. Americans’ thirst for
cognac remains as strong as
ever, but Hennessy no longer
has sufficient liquor to slake
it. Part of that is because
LVMH would rather hold on
to the stuff and sell it later
in China, where consumers
pay roughly three times the
U.S. price per bottle.
Production can’t be
ramped up quickly. Cognac
Nov. 2016 ’17
Nov. 2016 ’17
Hennessy
Rémy Martin
Martell
Courvoisier
Other
100%
75
50
25
0
Bottles Sold
Sales
Hennessy’s troubles will help
Rémy in the short term.
Sources: IWSR; Bernstein
needs at least two years of
aging. Better farming and
new vines can increase supply by only 3% to 4% a year,
according to the industry
trade body. Two poor grape
harvests haven’t helped.
These problems aren’t so
material for luxury behemoth LVMH. Adjusting for a
minority stake held by liquor
giant Diageo, Hennessy and
a few much smaller spirits
brands accounted for just 8%
of the diversified luxury
group’s operating profit last
year. Diageo’s exposure is
lower still, at about 5% of
pretax profit. It is a different
story for Rémy Martin. The
No. 2 U.S. brand accounts for
roughly three-quarters of
parent Rémy Cointreau’s operating profit.
So far, Hennessy’s U.S.
troubles have benefited its
rival by opening up more
shelf space. Rémy Martin
specializes in more expensive aged cognacs, so it
THE WALL STREET JOURNAL.
won’t feel today’s supply
problems for a few years. Its
more limited scale—it accounted for 13% of bottles
sold globally last year, compared with almost half for
Hennessy, according to data
provider IWSR—also affords
it greater flexibility.
Rémy Cointreau’s shares
have jumped to highs as the
Hennessy shortage and Chinese recovery have hit home.
They now trade at 34 times
earnings, an even bigger premium to peers than usual.
Rémy Martin needs to
prove it will remain immune
to the constraints troubling
its rival even as it posts similarly strong growth. The
more market share it steals
from a straitjacketed Hennessy, the more likely it will
face its own supply issues
down the road. The temptation to raise prices will be
strong, but the question is
whether consumers will
stomach it; cognac is already
expensive compared with
similar brown liquors.
Rémy Cointreau investors
may need to sober up.
—Stephen Wilmot
OVERHEARD
The phone maker that
cannot be named had been
very good to chip maker Skyworks Solutions, until this
week.
Apple has long restricted
what its suppliers can talk
about. Skyworks, which
makes power amplification
chips used in the iPhone and
other smartphones, gets
about 40% of its business
from Apple, according to Ed
Snyder of Charter Equity. But
on its fiscal fourth-quarter
earnings call Monday, Apple’s
name wasn’t mentioned,
though the phrase “largest
customer” came up half a
dozen times.
That silence can have its
price. Skyworks’ share price
fell 4.4% Tuesday, because
many investors expected a
bigger boost in revenue for
the current quarter from this
year’s new iPhones. But the
iPhone X is in short supply
and likely to remain that way
through the end of this year.
That likely clouded Skyworks’
outlook, but investors can’t
even take the company’s
word for it.
Mallinckrodt’s Problems Matter to Other Drug Makers
Mallinckrodt may not be
the best-behaved company in
the drug industry, but investors in all pharmaceutical
makers should take notice of
Tuesday’s nasty stock slide.
Third-quarter adjusted
earnings of $1.97 a share
topped analyst estimates,
but sales of $794 million
were down about 10% from
last year. The stock plunged
36% Tuesday. It is down
roughly 60% this year and
about 85% from the high hit
in 2015.
The two big problems for
Mallinckrodt are industrywide issues involving drug
prices and the opioid crisis.
Mallinckrodt, which faces
many legal and regulatory is-
Bedridden
Mallinckrodt share price
$60 a share
50
40
30
20
10
0
J F M A M J J A S O N
Source: FactSet
sues, highlighted payer pressures to explain weak
growth in its best-selling
branded drug, Acthar. That
drug, which treats infantile
spasms among other indications, sports a high price
tag, and its cost-effectiveness has been questioned in
major medical journals.
Those sales fell 5.6% from
a year earlier, as an increasing number of prescriptions
went unfilled, due in part to
pressures from payers. Mallinckrodt warned on a conference call that total drug volumes would decline in the
fourth quarter, though the
company said it is confident
that Acthar will continue to
expand over the long term.
Like many companies in
the industry, a higher-margin branded drug is responsible for higher profit margins than most other drugs
that Mallinckrodt sells. That
can spell trouble for drug
manufacturers when payers
start pushing for a better
deal or refuse to reimburse
for treatment altogether.
Mallinckrodt also reported
substantial declines in its
opioid products as regulators
crack down on aggressive
sales practices. Hydrocodone
sales were down 42% from a
year earlier, and Oxycodone
sales fell 38%. This comes as
pharmacy-benefit managers
have announced crackdowns
on access to opioid drugs.
Mallinckrodt disclosed over
the summer that it received
a subpoena from the Justice
Department for documents
“related to the marketing
and sale of the company’s
opioid products.”
Mallinckrodt is hardly
alone in facing this problem.
Opioid sales are a multibillion-dollar business, and several companies face government inquiries and lawsuits
relating to painkiller marketing, including Allergan, Teva
Pharmaceutical Industries,
Endo International, Johnson & Johnson and Purdue
Pharma. The decline in sales
at Mallinckrodt could be
matched at other companies
as the aggressive marketing
efforts that characterized
the sale of these drugs are
scaled back.
Tuesday’s stock beating
should make investors worry
about who might be next.
—Charley Grant
WSJ.com/Heard
Snap Looks
Pricey as Its
Growth Slows
Snapchat may be a popular mobile app with the
youth. But even teens understand how fickle popularity
can be. Parent company
Snap is also figuring that
out.
The company reported
Tuesday that it added about
five million average daily active users during the third
quarter, which is half the
number added in the same
period last year. That also
fell well short of the eight
million user additions Wall
Street had expected, thus
sending Snap’s share price
plunging following the report.
Not that all was bad. Average revenue per user increased 36% year over year
to hit a record $1.17 during
the quarter. But the positive
effects of growing engagement were muted by a move
by the company to bring
more automation to its ad
sales process. Snap said the
shift to programmatic ad
sales hurt pricing and
brought the quarter’s revenue to about $208 million,
which was 12% shy of analysts’ estimates. While revenue still rose 62% year over
year, it was by far the young
company’s slowest growth
rate on record.
The company had barely
two years of operating history under its belt when it
went public in March. Investors then valued Snap at
more than 20 times forward
sales purely on the company’s fast growth rate.
Without profits or cash flow,
the company couldn’t afford
to disappoint.
That is why Snap’s multiple of about 11 times is still
too high. Investing in Snap
was a bet on fast growth,
but that growth is still not
proving to be fast enough.
—Dan Gallagher
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